Mahakaleshwar Tollways Private Limited, Ujjain V. Deputy Commissioner of Income-Tax, Central Circle -1, Nashik

ITA 492/PUN/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8376 (ITAT-PUNE)
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 09-08-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Business expenditure; Condonation of delay
• Section: 143(3)

Judgement Text

आयकर अपीऱीय अधिकरण “ए” न्यायपीठ प ु णे म ें । IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE BEFORE SHRI S.S.GODARA, JM AND SHRI DR. DIPAK P. RIPOTE, AM आयकर अपीऱ सं. / ITA No.491 & 492/PUN/2020 ननधधारण वषा / Assessment Year : 2012-13 & 2013-14 Mahakaleshwar Tollways Pvt. Ltd., Ninora Toll Plaza Ninora, Ujjain – 456 001 PAN : AAFCM7676Q .......अपऩलधथी / Appellant बनधम / V/s. Dy.CIT, Cen.Circle-1, Nashik ........प्रत्यथी / Respondent Assessee by : None Revenue by : Shri Arvind Desai सपनवधई की तधरऩख / Date of Hearing : 22.06.2022 घोषणध की तधरऩख / Date of Pronouncement : 11.08.2022 आदेश / ORDER PER S. S. GODARA, JM : 1. These assessee’s twin appeals for A.Y. 2012 -13 & 2013-14 are directed against the CIT(A)-, Pune’s order’s dated 28/01/2020 CIT(A),Pune-12/10260- 10261/2016-17 involving proceeding u/s. 143(3) of the Income Tax Act, 1961; in short "the Act”. 2 ITA No.491 & 492/PUN/2020 A.Y. : 2012-13 & 2013-14 Mahakaleshwar Tollways Pvt. Ltd., Case called twice. None appears at the assessee’s behest. It is accordingly proceeded. We have heard the Revenue and perused the case files. 2. We note with the able assistance coming from the Revenue side that the assessee’s identical sole substantive grievance challenges correctness of the CIT(A)’s action rejecting its depreciation claim(s) of Rs.183,678,752/- & Rs.12,64,68,843/- ; assessment year wise, respectively, followed by non- condonation of delay for 420 days each therein. 3. It emerges first of all that the CIT(A)’s identical detailed discussion in para 3.1 to 3.4 has considered the assessee’s condonation averments of communication gap at various levels. Suffice to say, hon’ble apex court’s land mark decision in the Collector Land Acquisition V/s. v/s Mst. Katiji & Others (1987) 167 ITR 471 (SC) holds that all technical aspects must make way for the cause of substantial justice. We conclude in light thereof the impugned delay of 420 days each in filing of assessee’s lower appeals before the CIT(A) was neither intentional nor deliberate on account of circumstances beyond its control. The CIT(A)’s action refusing the condon the same stands reversed accordingly. 4. Next comes assessee’s identical grievance on merits that both the lower authorities have erred in law and on facts in not treating its right to collect toll as an intangible asset entitled for depreciation in light of section 32(1)(ii) 3 ITA No.491 & 492/PUN/2020 A.Y. : 2012-13 & 2013-14 Mahakaleshwar Tollways Pvt. Ltd., of the Act. The Assessing Officer appears to have place reliance on the CBDT Circular No. 2014 dated 23.04.2014 that cost of construction of development of infrastructure facilities / roads/ highways under BOT projects is to be amortized and claimed as the eligible business expenditure. Needless to say, the CIT(A) has nowhere adjudicated the issue on merits. 5. We have given our thoughtful consideration to the assessee’s forgoing depreciation claim disallowance on merits and find no substance in Revenue’s stand. This tribunals Special Bench’s decision in ACIT V/s Progressive Constructions Ltd. (2018) 161 DTR 289 (HYD)(SB) has already decided the issue in the taxpayer’s favour and against the department. Mr. Desai vehemently quoted (2014) 51 taxmann.com 214(Bom.) North Karnataka Expressway Pvt. Ltd. V/s CIT that hon’ble jurisdictional high court has already decided the issue in Revenue’s favour. He fails to rebut the clinching fact their lordships had not considered the assessee’s “right” to collect toll as an intangible asset u/s.32(i)(ii) of the Income Tax Act but decided it qua ownership claim of the project land. The Revenue’s instant arguments are rejected therefore. 6. Delay of 133 days in filing ITA No.492/PN/2022 institued on 10.08.2020 on account of covid-19 pandemic outbreak is condoned. 4 ITA No.491 & 492/PUN/2020 A.Y. : 2012-13 & 2013-14 Mahakaleshwar Tollways Pvt. Ltd., 7. These assessee’s appeals are allowed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the Open Court on this 11 th day of August, 2022. Sd/- Sd/- (DR.DIPAK P.RIPOTE) (S.S. GODARA) लेखध सदस्य/ ACCOUNTANT MEMBER न्यधनयक सदस्य/JUDICIAL MEMBER पपणे / Pune; ददनधांक / Dated : 11 th August, 2022. Ashwini आदेश की प्रनतनलनप अग्रेनषत / Copy of the Order forwarded to : 1. अपऩलधथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(A), Pune. 4. The Pr.CIT-2, Nagpur. 5. नवभधगऩय प्रनतनननध, आयकर अपऩलऩय अनधकरण, “ए” बेंच, पपणे / DR, ITAT, “A” Bench, Pune. 6. गधर्ा फ़धइल / Guard File. आदेशधनपसधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अपऩलऩय अनधकरण, पपणे / ITAT, Pune. 5 ITA No.491 & 492/PUN/2020 A.Y. : 2012-13 & 2013-14 Mahakaleshwar Tollways Pvt. Ltd., S.No. Details Date Initials 1 Draft dictated on 22.06.2022 2 Draft placed before author 08.08.2022 3 Draft proposed & placed before the Second Member 4 Draft discussed/approved by Second Member 5 Approved Draft comes to the Sr. PS/PS 6 Kept for pronouncement on 7 Date of uploading of Order 8 File sent to Bench Clerk 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R. 11 Date of Dispatch of order