Case Law Details
ACIT Vs M/s. PNG Tollway Ltd. (ITAT Chennai)
ITAT held that CIT(A) rightly directed the Assessing Officer to allow the assessee’s claim of depreciation @ 25% treating the toll way rights as an intangible asset under section 32(1)(ii) of the Income Tax Act, 1961.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal filed by the Revenue is directed against the order of the ld. Commissioner of Income Tax (Appeals) 3, Chennai dated 12.11.2018 relevant to the assessment year 2014-15. The Revenue has challenged the order of the ld. CIT(A) in deleting the addition made of ₹.150,81,78,012/-being the difference between the assessee’s claim of depreciation and the amortization of expenses allowable for the year under consideration by treating the toll way rights as an intangible asset under section 32(1)(ii) of the Income Tax Act, 1961 [“Act” in short].
2. Brief facts of the case are that the assessee filed return of income for the assessment year 2014-15 on 30.11.2014 admitting a loss of ₹.297,26,62,659/-. The return filed by the assessee was selected for scrutiny. After considering the details furnished by the assessee against statutory notices, the Assessing Officer completed assessment under section 143(3) of the Act determining the assessed total loss at ₹. 146,44,84,647/- after making various disallowance/addition. On appeal, after considering the submissions of the assessee and facts of the case and by following the decision of the Tribunal in assessee’s own case for the assessment year 2013-14, the ld. CIT(A) deleted the addition of ₹.150,81,78,012/- and allowed the appeal of the assessee.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
