NHAI grant not to be reduced from cost of project: ITAT Hyderabad

DCIT Vs Madhucon Agra Expressway Ltd (ITAT Hyderabad)

ITAT Hyderabad held that NHAI grant shall not be reduced from the cost of project before allowing amortization of cost of project. Accordingly, appeal of revenue dismissed and order of CIT(A) upheld.

Facts- The assessee company is a Special Purpose Vehicle for construction of highways awarded by NHAI on Built-Operate & Transfer (BOT). The addition made by AO on account of grant received from National Highway Authority of India (NHAI) of Rs.38,40,00,000/- by reducing the cost on Written Down Value (WDV

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