The Appellate Tribunal held that the right to collect toll in a...

The Appellate Tribunal held that the right to collect toll in a BOT project constitutes an intangible asset, allowing for depreciation u/s 32(1)(ii) of the Act. Citing a previous judgment, it was established that the right to operate the toll road/bridge and collect toll charges qualifies as a business or commercial right. Therefore, the appellant is eligible for depreciation on the intangible asset created through the construction of the road under the BOT contract. The appellant can claim depreciation at a rate of 25% on the road construction, as permissible for intangible assets. Consequently, the appeal of the assessee was allowed.