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| The Tax Publishers2021 TaxPub(DT) 3054 (Hyd-Trib) INCOME TAX ACT, 1961
Secton 32(1)(ii)
Mere option of amortisation would not debar an expenditure claim which is otherwise admissible as paper law. Right to collect toll amounted to an intangible asset under section 32(1)(ii) and revenue's stand that assessee ought to have amortised license fee paid to 'NHAI' as per the CBDT's Circular also failed to make any difference as the same could not be taken as an attempt at Board's part to deny depreciation relief in any manner; whatsoever.
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Depreciation - Allowability - Right to collect toll -
Assessee claimed depreciation on right to collect toll. AO denied assessee's claim holding that assessee, who was not owner of the fixed asset in the nature of the road project concerned, ought to have amortized corresponding expenditure of licence fee, etc., as per the CBDT's Circular No. 9/2014, dt. 3-4-2014. Held: Mere option of amortisation would not debar an expenditure claim which is otherwise admissible as paper law. Right to collect toll amounted to an intangible asset under section 32(1)(ii) and revenue's stand that assessee ought to have amortised license fee paid to 'NHAI' as per the CBDT's Circular also failed to make any difference as the same could not be taken as an attempt at Board's part to deny depreciation relief in any manner; whatsoever.
Followed:Taaria Tools Ltd. Jt. CIT (2015) 37 ITR 605 (SC) : 2015 TaxPub(DT) 1438 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13 to 2014-15
INCOME TAX ACT, 1961
Section 37(1)
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