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2019 (8) TMI 347 - ITAT CHENNAIDepreciation on toll way rights u/s 32(1)(ii) @ 25% - difference between the assessee’s claim of depreciation and the amortization of expenses allowable for the year under consideration by treating the toll way rights as an intangible asset under section 32(1)(ii) - HELD THAT:- Special Bench of this Tribunal in the case of M/S. PROGRESSIVE CONSTRUCTIONS LTD. AND VICE-VERSA [2017 (3) TMI 1167 - ITAT HYDERABAD] has held that the expenditure incurred by the assessee for construction of road under BOT contract by the Government of India has given rise to an intangible asset as defined under Explanation 3(b) r/w section 32(1)(ii) of the Act. Hence, assessee is eligible to claim depreciation on such asset at the specified rate As relying on M/S. PROGRESSIVE CONSTRUCTIONS LTD. (supra), CIT(A) rightly directed the AO to allow the assessee’s claim of depreciation @ 25% treating the toll way rights as an intangible asset under section 32(1)(ii) of the Act. Thus, we find no reason to interfere with the order passed by the ld. CIT(A). Thus, the ground raised by the Revenue stands dismissed.
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