2017 (9) TMI 529

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....come Tax ('PCIT') passed under Section 263 of the Income Tax Act, 1961 ('Act') setting aside the original assessment order dated 31st December 2013 passed by the Assessing Officer ('AO') under Section 143 (3) of the Act. 3. The background facts are that the Assessee is a Concessionaire of the Airport Metro Express Project of the Delhi Metro Rail Corporation Ltd. ('DMRC') under a Build-Operate-Transfer ('BOT') Scheme. The Assessee had accepted the concession for a period of 30 years. During the AY in question, the Assessee claimed depreciation of Rs. 112,29,74,447/- on fixed assets of Rs. 1560,48,17,189/- at 50% of the eligible depreciation rates since, during the AY in question, the assets were used for less than 180 days. 4. The case of ....

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....ssed by the AO was prejudicial to the interest of the Revenue. In reply to the SCN, the Assessee took the stand that, during the AY in question, it "had purchased the assets from independent vendors, out of its own funds for setting up the project." 8. Thereafter the impugned order dated 30th March 2016 was passed by the PCIT. It is seen that one of the factors that weighed with the PCIT in exercising jurisdiction under Section 263 of the Act was Circular No. 9 of 2014 dated 23rd April 2014 issued by the Central Board of Direct Taxes which stated that "under the BOT arrangement an assessee would only be allowed amortization in respect of expenditure incurred in creation of the infrastructure facility over the period of BOT arrangement and ....