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TMI Blog2013 (4) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... of the costs incurred by the assessee on development, construction and maintenance of the infrastructure facility. Such a right falls within the purview of section 32(1)(ii) .i.e 'License/right to collect Toll' is an Intangible Asset, thus, found eligible to claim depreciation. Decision in the case of Ashoka Info (P) ltd. v. Assistant Commissioner of Income Tax. [ 2008 (12) TMI 271 - ITAT PUNE-B] relied upon. Revenue appeal dismissed. - ITA.No.686/PN/2012 - - - Dated:- 29-4-2013 - Shri G.S.Pannu, Accountant Member, And Shri R.S.Padvekar, Judicial Member. For the Appellant : Smt. Sheetal M.Gadiya For the Respondent : Shri S.K.Singh ORDER PER G.S.PANNU, AM: This appeal by the Revenue is directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oad on BOT basis. In consideration the assessee was awarded Right to collect Toll from the motorists using the said infrastructure facility for the period from March, 2004 to May, 2018. The Assessing Officer denied the claim of depreciation on the ground that the said License/right to collect Toll was not an intangible asset within the meaning of section 32(1)(ii) of the Act. The Assessing Officer also did not follow the decision of the Mumbai Bench of the Tribunal in the case of Reliance Ports and Terminals Ltd. (ITA No.1743 to 1745/Mum/2007 dated 26.11.2007) and the decision of the Pune Bench of the Tribunal in the case of Ashoka Infoways (P) Ltd. vs. ACIT (123 TTJ 77). As per the Assessing Officer, the judgment of the Hon'ble B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apitalised by the assessee under the head License to collect Toll have been incurred for development and construction of the infrastructure facility, i.e., Dewas By-pass Road. It is also not in dispute that the assessee was to build, operate and transfer the said infrastructure facility in terms of an agreement with the Government of Madhya Pradesh. The expenditure on development, construction and maintenance of the infrastructure facility for a specified period was to be incurred by the assessee out of its own funds. Moreover, after the end of the specified period, assessee was to transfer the said infrastructure facility to the Government of Madhya Pradesh free of charge. In consideration of developing, constructing, maintaining the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evident that assessee got the right to collect toll for the specified period only after incurring expenditure through its own resources on development, construction and maintenance of the infrastructure facility. Secondly, section 32(1)(ii) permits allowance of depreciation on assets specified therein being intangible assets which are wholly or partly owned by the assessee and used for the purposes of its business. The aforesaid condition is fully satisfied by the assessee and therefore considered in the aforesaid perspective we find no justification for the plea raised by the Revenue before us. 12. In the result, we affirm the order of the CIT(A) in holding that the assessee was eligible for depreciation on the Right to collect T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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