Case Law Details
Roadstar Investment Vs ACIT (ITAT Mumbai)
Introduction: The case of Roadstar Investment vs ACIT, heard by the Mumbai ITAT, centers around the allowance of depreciation on the right to collect toll tax on infrastructure facilities. The appeal challenges the denial of depreciation by the Commissioner of Income Tax (Appeals) and seeks recognition of the right as an intangible asset under section 32(1)(ii) of the Income Tax Act.
Detailed Analysis:
1. Background: Roadstar Investment Managers Ltd, formerly known as North Karnataka Expressway Ltd, filed an appeal against the assessment order passed under section 143(3) of the Income Tax Act for the assessment year 2014-15. The appeal contested the disallowance of depreciation on the right to collect toll tax.
2. Claim for Depreciation: The appellant claimed depreciation at the rate of 25% on the right to collect toll on the road, treating it as an intangible asset under section 32(1)(ii) of the Act. Despite the appellant’s assertion that similar claims had been allowed in previous years, the Commissioner of Income Tax (Appeals) did not admit the additional ground raised during the appeal proceedings.
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