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2014 (1) TMI 981 - AT - Income TaxDepreciation on roads - Held that:- Though the NHAI remains legal owner of the site with full powers to hold, dispose of and deal with the site consistent with the provisions of the agreement, the assessee had been granted not merely possession but also right to enjoyment of the site and NHAI was obliged to defend this right and the assessee has the power to exclude others - In the case of assessee the land is held on lease and the road as capital asset has been built on it with exclusive ownership of the road, and the bridge in the assessee-company for the concession period, and which also includes the right to collect tolls and to regulate use of the bridge - Following Mysore Minerals Ltd. v. CIT [1999 (9) TMI 1 - SUPREME Court] - the term "owned" as occurring in Section 32(1) of the Act and held that it must be assigned a wider meaning anyone in possession of property in his own title exercising such dominion over the property as would enable others being excluded there from and having the right to use and occupy the property and/or to enjoy its usufruct in his own right would be the owner of the buildings, though a formal deed of title may not have been executed and registered. Section 32 would apply for the purpose of providing depreciation to be worked out in accordance with the law - For removal of doubts the legislature has provided that the building includes roads at which the depreciation is admissible. Following CIT vs. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME Court] - if the court finds that the language of a taxing provision is ambiguous or capable of more meanings than one, then the court has to adopt that interpretation which favours the assessee, more particularly so where the provision relates to the imposition of penalty - The CIT(A) was correct in taking one view - Decided against Revenue.
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