TMI Blog2013 (4) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... t toll . 2. Whether on the facts and in the circumstances of the case, the Ld.CIT(A)-II, Nashik was justified in holding that the assessee is eligible for depreciation on asset Licence to collect toll . 2. The short issue in controversy in respect of the depreciation claimed by the assessee on the expenditure incurred on the Road Project i.e. the Katni By Pass Road on N.H. 7 in Madhya Pradesh which has been built on BOT basis, treating the same as licence to collect toll. 3. The briefly stated facts as under. The applicant company engaged in the business of development, operation and maintenance of Katni By Pass Road on N.H. 7 in Madhya Pradesh on BOT basis. The assessee has entered into agreement with Ministry of Road Transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for depreciation on this asset. This view is supported by the decision of the Hon'ble Tribunal in the case of sister concern of the appellant viz. Ashoka Info Pvt. Ltd. in I.T.A. No.44/PN/07 dated 31/12/2008 - Pune Bench, and another decision of the Hon'ble Tribunal in the case of Reliance Ports and Terminals Ltd. in I.T.A. Nos. 1743 to 45/MUM/07 dated 26/11/2007 - Mumbai Bench. On identical facts in the case of appellant's sister concern namely Ashoka Buildcon Ltd. in I.T.A. No.NSK/CIT(A)-1/412/09-10 dated 24/03/2011, I have held that Right to Collect Toll is an intangible asset, eligible for depreciation @ 25%. In view of the above findings and respectfully following the orders of the Hon'ble Tribunal (supra) on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C), Circle-I, Nashik Vs. Ashoka Infraways Pvt. Ltd. ITA Nos. 185 186/PN/2012 order dated 29-04-2013. The facts of the case are identical with the case of present assessee. The Tribunal considered the decision in the case of Reliance Port and terminal Ltd. ITA Nos. 1743 to 1745/Mum./2007 dated 26-11-2007 ITAT Mumbai Benches and Ashoka Info Pvt. Ltd ITA No. 44/PN/2007 dated 31-12-2008 ITAT Pune Bench and held as under: 10. We have carefully considered the rival submissions. Factually speaking, there is no dispute to the fact that the costs capitalised by the assessee under the head License to collect Toll have been incurred for development and construction of the infrastructure facility, i.e., Dewas By-pass Road. It is also not in di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to in section 32(1)(ii) of the Act for the reason that the agreement with the Government of Madhya Pradesh only allowed the assessee to recover the costs incurred for constructing the road facility whereas section 32(1)(ii) of the Act required that the assets mentioned therein should be acquired by the assessee after spending money. The said argument in our view is factually and legally misplaced. Factually speaking, it is wrong to say that impugned right acquired by the assessee was without incurrence of any cost. In fact, it is quite evident that assessee got the right to collect toll for the specified period only after incurring expenditure through its own resources on development, construction and maintenance of the infrastructure f ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
