VIJAYWADA GUDUGOLANU ROAD PROJECT PRIVATE LIMITED,NEW DELHI vs. ACIT CIRCLE-26(2), NEW DELHI

ITA 1839/DEL/2020Status: DisposedITAT Delhi06 August 2024AY 2015-16Bench: SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)18 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the 'rights to collect toll' do not qualify as an intangible asset under Section 32(1)(ii) of the Income Tax Act, 1961. Therefore, depreciation on such rights is not allowable.

What were the facts?

The assessee claimed depreciation on the 'rights to collect toll' as an intangible asset. The Assessing Officer disallowed this claim, allowing amortization instead. The CIT(A) upheld the disallowance.

What were the issues?

Whether the 'rights to collect toll' acquired under a concession agreement constitute an 'intangible asset' eligible for depreciation under Section 32(1)(ii) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI ‘H’ BENCH,

Before: SHRI CHALLA NAGENDRA PRASAD, & SHRI NAVEEN CHANDRA

For Respondent: Shri Amit Katoch, Sr. DR
Hearing: 26.06.2024Pronounced: 06.08.2024

PER NAVEEN CHANDRA, ACCOUNTANT MEMBER:

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This appeal by the assessee is preferred against the order of the ld. CIT(A), Delhi – 36 dated 26.08.2020 pertaining to A.Y 2015-16. 2. The grievances of the assessee read as under:

“1. a) On the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Appeals) - 36, Delhi ["CIT(A)"], erred in confirming the disallowance of the Appellant's claim for Depreciation of Rs. 976,14,23,859/- on Intangible Assets by way of "Rights to collect Toll" under Section 32(1)(ii) of the Income Tax Act, 1961 ("the Act"), by relying upon the decision of the Hon'ble Bombay High Court in the case of North Karnataka Expressway L

The order continues below.

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