2021 (4) TMI 612

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....sposing of the objections filed by the assessee with regard to reopening of assessment under Sections 147 to 150 of the Income Tax in relation to assessment year 2015-16. The main reason for reopening of the assessment is that the assessee has erroneously applied CBDT Circular No.09/2014 dated 23/04/2014 and claimed amortization expenses for the financial year 2014-15. According to the Income Tax Department, this Circular is not applicable to the assessee as the assessee is a BOT (Build -Operate- Transfer), who receives amenity while the circular applies only to BOT operators who are collecting toll. Mr. Banerjee, assisted by Mr. Asim Choudhury, has placed this circular and relied specifically on paragraphs 4 and 5 of the said circula....

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....deduction under Section 80IA of the Income Tax Act, 1961, there was no question of any escapement of tax as increase in income by not claiming amortization would not result in the assessee paying any further tax as the same was 100% deductible under Section 80IA. Mr. S. N. Dutta, learned Senior Advocate appearing on behalf of the respondent relies on first paragraph of the circular and submits that the circular is not applicable to the assessee. The first paragraph is delineated below : "It has come to the notice of the Board that disputes have arisen as to whether the expenditure incurred on development and construction of infrastructural facilities like roads/highways on Build-Operate-Transfer ('BOT') basis with right ....