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2019 (9) TMI 1545 - AT - Income TaxDepreciation u/s 32 on Concession Rights Toll by treating the same as intangible assets - whether the CIT(A) is right in concluding that the assesses claim for depreciation on “license to collect toll”, being an intangible asset, falling within the scope of Sec. 32(1)(ii)? - HELD THAT:- We find that in case of Progressive Construction Ltd.[2017 (3) TMI 1167 - ITAT HYDERABAD] had concluded, that where an Infrastructure Development company which had constructed a road on build, operate and transfer (BOT) basis on the land owned by the Central Government, gets vested with a right to an intangible asset under Explanation 3(b) r.w. Sec.32(1)(ii), the assessee would be eligible to claim depreciation on such asset as per the specified rate. Apart there from, it was observed by the Tribunal, that where the assessee had never claimed expenditure incurred for construction of the road on build, operate and transfer (BOT) basis, as a deferred revenue expenditure, the same could not have been amortized in terms of CBDT Circular No. 9 of 2014, dated, 23.04.2014. Thus the issue as to whether an Infrastructure Development company which had constructed a road on build, operate and transfer (BOT) basis on the land owned by the Central Government would be eligible for claim of depreciation in respect of its intangible rights i.e “right to collect toll” under Sec. 32(1)(ii), is squarely covered by the aforesaid order of the “Special bench‟ of the Tribunal in the case of ACIT, Circle 10(2), Hyderabad, Vs. Progressive Construction Ltd. [2017 (3) TMI 1167 - ITAT HYDERABAD] and also the orders of the coordinate benches of the Tribunal viz. (i) DCIT, Circle-9(1)(2),Mumbai Vs. M/s Atlanta Ltd. Mumbai [2018 (2) TMI 1514 - ITAT MUMBAI] and (ii) ACIT Vs. M/s PNG Tata Ltd. [2019 (8) TMI 347 - ITAT CHENNAI] - Decided in favour of assessee.
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