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TMI Blog2021 (4) TMI 701X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 80IA.- HELD THAT:- CIT's impugned order does not address the issue in relation to the tax neutrality because of the fact that the assessee was eligible for deduction under Section 80IA. All other issues raised by the petitioner have been dealt with. Whether the same have been dealt with correctly or not, has not been gone into by me in this writ petition. Commissioner of Income Tax should have looked into the fact as to whether there could not be an escapement of tax because of the fact of the deduction available to the petitioner under Section 80IA. It is to be noted that this was the last year of deduction that was available to the petitioner out of the ten consecutive years that is available. As the reassessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment, 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 circular. Paragraphs 4 and 5 are delineated below :- 4. There is no doubt that where the assessee incurs expenditure on a project for development of roads/highways, he is entitled to recover cost incurred by him towards development of such facility (comprising of construction cost and other pre-operative expenses) during the construction period. Further, expenditure incurred by the assessee on such BOT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable 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 to collect toll is entitled for depreciation under section 32(1)(ii) of the Act or the same can be amortized by treating it as an allowable business expenditure under the relevant provisions of the Income-Tax Act, 1961 ( Act ). Mr. Trivedi, learned Senior Counsel submits that since this infrastructure facilities run by the assessee does not have any right for collecting toll, this circular is not applicable to the assessee. Mr. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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