2021 (11) TMI 1088

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....of the same by this common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.1389/PUN/2018 are stated herein. 4. The Revenue raised the following grounds of appeal :- "1.1 Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A)-1, Nashik was justified in allowing the depreciation of Rs. 1,03,89,78,720/- claimed on the asset " Right to Collect Toll", when it is evident that the asset on which depreciation has been claimed, does not form part of intangible asset defined u/s 32(1)(ii) of the Income Tax Act, 1961. 1.2 Whether on the facts and in the circumstances of the case, the Ld. CIT(A)- 1, Nashik was justified in holding that the assessee is el....

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....nd maintaining Durg to Chhattisgarh/Maharashtra Border section road facility on NH-6, in the State of Chhattisgarh, on Build, Operate & Transfer (BOT) basis. The respondentassessee had incurred a total cost of Rs.512 crores on the above project. The cost of the project was capitalized in the books of accounts under the head "Licence to Collect Toll" treated as intangible asset and claimed depreciation @ 25% and the said claim was disallowed by the Assessing Officer by holding that the respondent-assessee is not the owner of any asset. 6. On appeal before the ld. CIT(A), the claim of the respondent-assessee was allowed following the decisions of the Co-ordinate Bench of Pune Tribunal in the case of (i) Ashoka Highways (Durg) Ltd. vs. ITO ....

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....Co. Ltd. (130 taxmann.com 63). 10. We heard the ld. Sr. DR and perused the written submission filed by the respondent-assessee as well as the material on record. The only issue in the present appeal relates to whether or not the cost of "Right to Collect Toll" qualifies as intangible asset as defined under clause (ii) of sub-section (1) of section 32 of the Act. There is no dispute about the cost of acquisition. The only dispute is with regard to the true nature of the rights acquired in terms of the contract awarded by the NHAI. The relevant provisions of section 32(1)(ii) are extracted hereinbelow for ready reference :- "Depreciation. 32. (1) In respect of depreciation of- (i) .......... (ii) know-ho....