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2022 (9) TMI 810 - AT - Income TaxDepreciation on toll collections rights - intangible asset u/s 32(1)(ii) - Whether assessee is entitled for depreciation on toll collection rights as it is an intangible asset as per the section 32(1)(ii)? - HELD THAT:- The assessee company is engaged in the business of design, engineering procure, construction, maintenance, management and operation of toll collection and has entered into agreement with Madhya Pradesh Road Developemnt Corporation (MPRDC) for the purpose of maintaining the roads on the basis of build, operate and transfer(BOT) basis and the A.Y 2012-13 is the first year were the asset was put to use and the assessee has claimed the depreciation u/s 32(1)(ii) treating as the intangible asset and the A.O has made the disallowance of depreciation, and on appeal, the CIT(A) has allowed the claim of the assessee. On further appeal filed by the revenue ITAT has dismissed the revenue appeal considering the decisions in the case of North Karnataka Express Highway Ltd [2014 (11) TMI 351 - BOMBAY HIGH COURT] and West Gujarat Expressway Ltd, [2016 (4) TMI 1184 - BOMBAY HIGH COURT]. AR has demonstrated the voluminous information in the paper book supporting the claim - Whereas, in the present case the depreciation@25% was claimed treating the toll rights as intangible Assets. We find the present facts in respect of claim of depreciation on toll rights are similar to earlier assessment year. Accordingly we follow the judicial precedence and set aside the order of the CIT(A) and direct the assessing officer to allow the claim of depreciation and allow the grounds of appeal in favour of the assessee.
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