Depreciation Allowed on BOT Annuity Rights – Intangible Asset Recognised

Jorabat Shillong Expressway Vs DCIT (ITAT Mumbai) Mumbai ITAT held that concessionaire rights under a BOT/DBFOT agreement (right to operate and receive annuity) constitute an intangible asset eligible for depreciation u/s 32(1)(ii). The assessee had constructed a highway project at its own cost under an NHAI concession and claimed depreciation @25% on the capitalized cost treated as intangible asset (right to receive annuity). The AO denied depreciation, treating the road as not owned by the assessee, and instead allowed amortization as per CBDT Circular 9/2014. The Tribunal found that the dep...