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2021 (11) TMI 1088 - AT - Income TaxDepreciation claimed on the asset " Right to Collect Toll" - commercial right or intangible asset - true nature of the rights acquired in terms of the contract awarded by the NHAI - Whether the asset on which depreciation has been claimed, does not form part of intangible asset defined u/s 32(1)(ii) - whether or not the cost of “Right to Collect Toll” qualifies as intangible asset as defined under clause (ii) of sub-section (1) of section 32? - HELD THAT:- There can be no doubt that as result of developing this project, the respondent-assessee had acquired a commercial right to collect the toll in terms of the contract awarded by NHAI. This right definitely falls within the meaning of “commercial right” or “intangible asset”. This definitely would qualify for depreciation @ 25%. To the same effect is the decisions of the Hon’ble Rajasthan High Court in the case of GVK Jaipur Expressway Ltd.[2017 (10) TMI 1380 - RAJASTHAN HIGH COURT] the High Court has taken into consideration all the decisions and more particularly the decisions of (i) Hon’ble Delhi High Court in the case of Moradabad Toll Road Co. Ltd.[2014 (11) TMI 354 - DELHI HIGH COURT] (ii) Hon’ble Allahabad High Court in the case of CIT v. Noida Toll Bridge Co. Ltd.[2012 (11) TMI 556 - ALLAHABAD HIGH COURT]; (iii) Hon’ble Madras High Court in the case of CIT v. VGP Housing (P.) Ltd.[2014 (8) TMI 423 - MADRAS HIGH COURT]; (iv) Hon’ble Rajasthan High Court in the case of CIT v. Jawahar Kala Kendra [2014 (6) TMI 292 - RAJASTHAN HIGH COURT] (v) Hon’ble Rajasthan High Court in the case of CIT v. Mohd. Bux Shokat Ali [2001 (2) TMI 26 - RAJASTHAN HIGH COURT] (vi) decisions of the Hon’ble Jurisdictional High Court in the case of North Karnataka Expressway Ltd. [2014 (11) TMI 351 - BOMBAY HIGH COURT]; (vii) CIT vs. West Gujarat Expressway Ltd. (No.1) [2016 (4) TMI 1184 - BOMBAY HIGH COURT] and (viii) CIT vs. West Gujarat Expressway Ltd [.2016 (4) TMI 1220 - BOMBAY HIGH COURT] have no application to the facts of the present case, inasmuch as, the decision in the said two cases relates to the allowability of depreciation on roads treating as building. In the circumstances, we do not find any illegality in the order of the ld. CIT(A). Accordingly, we do not find any merit in the appeal filed by the Revenue. Hence, the grounds of appeal raised by the Revenue are dismissed.
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