BSCPL AURANG TOLLWAY LIMITED,HYDERABAD vs. DCIT., CIRCLE-1(1), HYDERABAD

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ITA 612/HYD/2024Status: DisposedITAT Hyderabad28 January 2026AY 2018-19Bench: the Tribunal. The assessee has filed an affidavit explaining the reasons for the delay, wherein it was submitted that the appeal for the relevant assessment year was required to be filed within 60 days from the date of receipt of the order passed under Section 263 of the Income-tax Act, 1961. However, the1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO's order was erroneous and prejudicial to the revenue as the claim for depreciation on toll road development as an intangible asset was not supported by High Court decisions and CBDT circulars. Therefore, the PCIT rightly invoked Section 263.

What were the facts?

The assessee claimed depreciation on the cost of toll road development as an intangible asset. The Principal Commissioner of Income Tax (PCIT) invoked Section 263, holding the Assessing Officer's (AO) acceptance of this claim as erroneous and prejudicial to revenue. The assessee argued the AO had applied his mind and that the claim was based on ITAT precedents.

What were the issues?

Whether the cost incurred for development of toll roads on a BOT basis qualifies as an intangible asset eligible for depreciation under Section 32(1)(ii) of the Income Tax Act, and if the PCIT correctly invoked Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 32(1)(ii),Section 143(3)

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Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad

आदेशकी प्रनतनलनप अग्रेनर्त/ Copy of the order forwarded to:-

1. 1. निर्धाररती/The Assessee : BSCPL Aurang Tollway Limited, 8-2-502/1/A, Jivi Towers, Road No.7, Banjara Hills, Hyderabad – 500034. 2. रधजस्व/ The Revenue : The Deputy Commissioner of Income Tax, Circle 1(1), Hyderabad.

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