ACIT, CIRCLE-14(1)(2), MUMBAI vs. WEST GUJARAT EXPRESS WAY LTD., MUMBAI

ITA 2496/MUM/2021Status: DisposedITAT Mumbai26 September 2022AY 2012-1316 pages
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What did the Tribunal hold?

The Tribunal held that the assessee is entitled to depreciation on the right to collect toll as an intangible asset. It also held that interest income earned on fixed deposits maintained as per a loan agreement is business income, following its own previous decisions and the jurisdictional High Court's affirmation.

What were the facts?

The assessee claimed depreciation on toll roads as plant and machinery, which was disallowed by the AO. The CIT(A) allowed depreciation on the right to collect toll as an intangible asset but restricted it to 15% as claimed in the return, not the 25% applicable to intangibles. The Revenue appealed against the CIT(A)'s decision to allow depreciation on interest income as business income.

What were the issues?

Whether depreciation is allowable on the right to collect toll as an intangible asset and whether interest income on FDRs maintained under a loan agreement constitutes business income.

Which sections of the Income-tax Act were involved?

Section 32

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SANDEEP SINGH KARHAIL

For Appellant: Shri Niranjan Govindekar a/w, Shri Bhupal Rapelli
For Respondent: Shri Ashok Kumar Kardam

PER SANDEEP SINGH KARHAIL, J.M.

The present cross appeals have been filed by the assessee and the Revenue challenging the impugned order dated 13/08/2020, passed under section 250 of the Income Tax Act, 1961 („the Act‟) by the learned Commissioner of I

The order continues below.

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