Depreciation on Intangible Highway Assets Allowed: ITAT Delhi

JCIT (OSD) Vs Gwalior Bypass Project Ltd (ITAT Delhi) Depreciation on Highway Projects Allowed: ITAT Upholds Assessee’s Claim on BOT Roads The Delhi Bench “B” of the ITAT, in JCIT v. Gwalior Bypass Project Ltd. (AY 2016-17), dismissed the Revenue’s appeal and upheld the allowance of depreciation on highway projects developed under the DBOT (Design, Build, Operate and Transfer) model. The assessee, a special purpose vehicle executing a four-lane highway project for NHAI, had capitalised the entire project cost as intangible assets and claimed depreciation under section 32. The AO disall...