https://www.taxtmi.com/caselaws?id=314445 ITAT Delhi allowed assessee's claim for 25% depreciation on rights to build and operate toll road under BOT arrangement, treating it as intangible asset under section 32(1)(ii). Court held that while Government retains ownership of immovable property, assessee's contractual right to operate project and collect tolls constitutes a license qualifying as intangible asset eligible for depreciation. AO's restriction to 7.41% depreciation was overturned. Additionally, ITAT upheld CIT(A)'s deletion of disallowance regarding warranty period expense provisions, recognizing contractual liability for project maintenance during warranty period under matching principle. Revenue's appeal dismissed. en-us Wed, 26 Jul 2023 00:00:00 +0530 Tue, 11 Jun 2024 13:44:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314445 ITAT Delhi allowed assessee's claim for 25% depreciation on rights to build and operate toll road under BOT arrangement, treating it as intangible asset under section 32(1)(ii). Court held that while Government retains ownership of immovable property, assessee's contractual right to operate project and collect tolls constitutes a license qualifying as intangible asset eligible for depreciation. AO's restriction to 7.41% depreciation was overturned. Additionally, ITAT upheld CIT(A)'s deletion of disallowance regarding warranty period expense provisions, recognizing contractual liability for project maintenance during warranty period under matching principle. Revenue's appeal dismissed. Case-Laws Income Tax Wed, 26 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314445