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

Facts

The assessee company, BSCPL Aurang Tollway Limited, filed its return of income for FY 2018-19, declaring a loss. The assessment order was completed under Section 143(3) accepting the returned loss. The Principal Commissioner of Income Tax (PCIT) invoked Section 263, viewing the assessment order as erroneous and prejudicial to the revenue. The PCIT's order was challenged by the assessee before the Income Tax Appellate Tribunal (ITAT).

Held

The ITAT held that the Assessing Officer (AO) failed to conduct proper inquiries and verify the issue of capitalization of cost incurred for developing the toll road and the depreciation claimed thereon, in light of CBDT Circular No. 9 of 2014. The AO's order was considered erroneous and prejudicial to the interest of the revenue. The Tribunal upheld the PCIT's order.

Key Issues

Whether the Assessing Officer's assessment order allowing depreciation on the cost of toll road as an intangible asset was erroneous and prejudicial to the interest of the revenue, thus warranting revision under Section 263, especially in light of CBDT Circular No. 9 of 2014.

Sections Cited

Section 263, Section 143(3), Section 32(1)(ii), Section 119

AI-generated summary — verify with the full judgment below

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.