BSCPL AURANG TOLLWAY LIMITED,HYDERABAD vs. DCIT., CIRCLE-1(1), HYDERABAD
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?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(10)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- Collector, Land Acquisition v. Mst. Katiji3,926 citing167 ITR 471 · 1987 · SC
- Malabar Industrial Co. Ltd. v. CIT2,943 citing243 ITR 83 · 2000 · SC · Read judgment
- CIT v. Max India Ltd.1,162 citing166 Taxmann 188 · 2007 · SC
- CIT v. Amitabh Bachchan264 citing384 ITR 200 · 2016 · SC · Read judgment
- ACIT v. Progressive Constructions Ltd.63 citing161 DTR 289 · 2018 · ITAT
- North Karnataka Expressway Ltd. v. CIT32 citing372 ITR 145 · 2015 · HC
- Spectra Shares and Scrips (P) Limited v. Commissioner of Income Tax28 citing36 Taxmann.com 348 · 2013 · HC · Read judgment
- 214) (Bombay) and (ii) CIT-10 v. West Gujarat Expressway Ltd.19 citing82 Taxmann.com 224 · 2017 · HC
- PCIT v. V-con Integrated Solutions14 citing476 ITR 526 · 2025 · SC
- Ashoka Infrastructure Ltd. v. ACIT13 citing163 DTR 321 · 2017 · ITAT
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.
More judgments on Section 263
- Gillette India Limited, Mumbai vs Principal Commissioner of Income Tax, JaipurITA 1316/JPR/2026[2018-19]Status: Disposed16 Oct 2026AY 2018-19
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Vimal Harilal Baldania, Gandhidham vs The ITO Ward 2, GandhidhamITA 770/RJT/2025[2017-18]Status: Disposed15 Oct 2026AY 2017-18
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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