Is an assessee, who is not the owner of a fixed asset in the nature of a road project, ought to have amortized the corresponding expenditure of license fee etc.?

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Last updated: 17 June 2021
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This Income Tax Appellate Tribunal case examines whether an assessee, who is not the owner of a road project, should have amortised expenditure like licence fees instead of claiming depreciation. The Assessing Officer argued for amortisation based on a CBDT circular for BOT projects. However, the CIT(A) treated the depreciation claim as relating to an intangible asset, specifically the right to collect toll, allowing it under Section 32(1)(ii) of the Income Tax Act.

Court :
ITAT Hyderabad

Brief :
These Revenue’s appeals for AYs.2012-13, 2013-14 & 2014-15 arise from the CIT(A)-4, Hyderabad’s orders; all dated 16-08-2018 passed in appeal Nos.0175 / 15-16 / ACIT,Cir.16(2) / CIT(A)-4 / Hyd / 17-18, 0008 / 16-17 / ACIT,Cir.16(2) / CIT(A)-4 / Hyd / 18-19 & 0393 / 16-17 / DCIT,Cir.16(2) / CIT(A)-4 / Hyd / 18-19; respectively involving proceedings u/s.143(3) of the Income Tax Act, 1961 [in short,‘the Act’].

Citation :
ITA 2121/Hyd/2018

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