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2017 (10) TMI 579 - AT - Income TaxDepreciation claim on the asset “Right to collect Toll” - Depreciation on intangible asset - Held that:- The issue raised in the present appeal is squarely covered by the order of Tribunal in sister concern’s case i.e. Ashoka Infrastructure Ltd. Vs. ACIT [2013 (8) TMI 588 - ITAT PUNE] the '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 has been adjudicated by the Tribunal in the aforesaid precedents to be in the nature of 'intangible asset' falling within the purview of section 32(1)(ii) of the Act and has been found eligible for claim of depreciation - section 32(1)(ii) permits allowance of depreciation on assets specified therein being 'intangible assets' which are wholly or partly owned by the assessee and used for the purposes of its business. Thus the assessee is entitled to claim the depreciation on intangible assets as provided under section 32(1)(ii) of the Act. The second part of the order of Assessing Officer in amortizing the expenditure over the period of facility and allowing the same stands reversed. The Assessing Officer is thus, directed to allow the claim of assessee vis-à-vis depreciation on intangible asset under section 32(1)(ii) of the Act. - Decided in favour of assessee.
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