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TMI Blog2013 (5) TMI 493X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 591 - Bombay High Court]. In favour of assessee. Depreciation on road - Held that:- This issue is also decided by the Tribunal for assessment year 2007-08 allowing the appeal as relying on case of CIT Vs. M/s Noida Toll Bridge Co. Ltd. [2012 (11) TMI 556 - ALLAHABAD HIGH COURT] & Maharashtra State Road Development Corporation Limited [2008 (4) TMI 704 - ITAT MUMBAI] to held that depreciation is allowable on roads. The Tribunal has held that roads, flyovers, bridges etc. constructed and owned by the assessee and utilized in its business of providing infrastructure were tools of its trade and essential adjuncts to its business and not merely a setting in which business was carried on and, therefore, would constitute plant and would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the decision of the Tribunal in its own case for assessment year 2007- 08, copy of the same has also been filed. 5. On the other hand, learned DR fairly stated that the issues are covered by the order of the Tribunal for immediately preceding year, however, he placed reliance on the order of the AO. 6. After considering the submissions and perusing the material on record, we found that all the issues are covered in favour of the assessee by the order of the Tribunal in case of assessee itself for the assessment year 2007-08 passed in ITA No.1284/Mum/2011, vide order dated 27-2-2013. Copy of the order of the Tribunal is placed on record. We noted that in respect of deleting the addition of income and under the head income from other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile allowing the appeal in respect of all these issues, the Tribunal has followed the decision of the Hon‟ble Allahabad High Court in the case of CIT Vs. M/s Noida Toll Bridge Co. Ltd., passed in ITA No.316/2011. The findings of the Hon‟ble High Court have also been reproduced in the order of the Tribunal for assessment year 2007-08 at page 7. The Tribunal further noted that in case of Maharashtra State Road Development Corporation Limited, 126 ITD 279 (Mum) has also held that depreciation is allowable on roads. The Tribunal has held that roads, flyovers, bridges etc. constructed and owned by the assessee and utilized in its business of providing infrastructure were tools of its trade and essential adjuncts to its business and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar. Arguments of the department were not recorded in right perspective by the Tribunal. Therefore, the order of the Tribunal should not be followed. It was also stated that the order of the Tribunal for immediately preceding year is not binding on the Tribunal. It was also argued that there is a difference between the property owned by the assessee and by other parties. In this case bill was raised on account of operation of transferring the land to construct the road to the assessee, therefore, only 10% on depreciation can be allowed and not 15%. It was further submitted that roads are immovable property and on transfer of immovable property, depreciation is allowable only 10%, since the property is immovable property. It was further submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement, we find that the decisions relied upon by the assessee squarely apply n the facts of the case. We accordingly, direct the AO to allow depreciation on toll road by treating it as plant and machinery. Accordingly, findings of the Ld. CIT(A) are modified to this extent." Facts are similar for the year under consideration and as stated above, in our considered view, the arguments of department have already been taken into consideration by the Tribunal. Moreover, the Tribunal has allowed following the decision of the coordinate bench at Ahmedabad. Facts were similar in this case and, therefore, the Tribunal has held that the depreciation is allowable on toll road by treating it as plant and machinery. Thus, respectfully following the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous expenses on debenture issues. Therefore, the arguments of learned DR are misplaced. 18. We have heard rival submissions and considered them carefully. After considering the same, we found that the assessee has not claimed any interest but has claimed on account of various other expenditure on debenture issues. The Hon‟ble Supreme Court in the case of Secure Meters Limited (supra), has held that the debentures issues are loan, and, therefore, whether it is convertible or non- convertible, does not militate against the nature of the debenture, being loan, and, therefore, the expenditure incurred would be admissible as revenue expenditure. Facts are similar in the case in hand. Therefore, respectfully following the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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