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2013 (4) TMI 795 - AT - Income TaxDepreciation - 'License/right to collect Toll' is an Intangible Asset u/s Section 32(1)(ii) or not - Assessee was a consortium of two companies, with the object of developing the infrastructure project of construction of Takli-Kasegaon-Anawali Road on Build, Operate and Transfer (BOT) basis for the Government of Maharasthra. He capitalised the cost incurred in the development and construction of the said project under the head ‘License to collect toll’. Further, in the return of income, assessee claimed depreciation @ 25% following section 32(1)(ii). - CIT(A) allowed the claim of depreciation - HELD THAT: - 'Right to collect the Toll’ is emerging as a result of the costs incurred by the assessee on development, construction and maintenance of the infrastructure facility. Such a right falls within the purview of section 32(1)(ii) .i.e 'License/right to collect Toll' is an Intangible Asset, thus, found eligible to claim depreciation. Decision in the case of Ashoka Info (P) ltd. v. Assistant Commissioner of Income Tax. [2008 (12) TMI 271 - ITAT PUNE-B] relied upon. Revenue appeal dismissed.
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