case,
expenditure incurred by the assessee on construction of road on
BOT basis is Capital or Revenue? If it is capital expenditure,
whether the same ... expenditure incurred by the assessee for construction of a road
under BOT contract with GOI gives rise to an asset and if so,
whether
assets, the assessee claimed depreciation of Rs.
17,01,00,116/- on BOT Project @ 25% on the opening ... project i.e.
2040 days. He accordingly, computed the allowable amortization of
BOT project for the FY relevant to AY 2013-14 as under:
Opening
undertaking the projects either by way of Build,
Operate and Transfer (BOT) or Build, Own, Operate and Transfer (BOOT).
7.10 Further, one more circular ... projects i.e., Gorakallu Project and Veligonda Project either
on BOT, BOOT or BOLT basis. As clearly stated in the contract
agreements (supra), the assessee
Highway
awarded by NHAI on Build, Operate and Transfer basis (in short
BOT), filed its return of income ... assessee company claimed
depreciation of Rs.18,16,15,643/- on BOT projects @ 5% (at half
the rate as being put to use for less
state of Kerala on Built, Operate and Transfer(BOT) basis
which constructed highway as per contract from NHAI and
operating the same on BOT basis ... humbly submitted that the rights if any in the BOT
project of the assessee cannot be divorced from the highway
being a tangible asset
service (road) during the concession period in respect of Build-
Operate-Transfer (BOT) project under taken by the Company. Toll
collection rights are capitalized ... clarified
that the expenditure incurred for development of roads/highways in BOT
agreements needs to be amortized and claimed as allowable business
expenditure under
lane highway on the Nandigama-Ibrahimpatnam section of
NH-9 on BOT basis. The entire cost of construction ... undisputed fact that the department
allowed the similar amortization of BOT Project
expenditure in the earlier assessment year under
scrutiny assessment under section
relating to the
2 I.T.A. No. 1344/Hyd/2013
Charminar Bot tling Company Pvt. L td .,
Hyd.
addition ... Agencies Pvt. Ltd.
.
3 I.T.A. No. 1344/Hyd/2013
Charminar Bot tling Company Pvt. L td .,
Hyd.
5. Aggrieved by the order
instant case the
assessee had neither developed a facility on BOT/BOOT or
similar other basis nor the agreement with NHAI stipulates the
period given ... contracts or
sub contracts taken by the assessee were of the BOT/BOOT
model. None of these were conceived, designed and planned by
the assessee
enterprises. While
providing benefits, the government specifically specified certain
grants only to BOT Schemes. For the other schemes all the other
benefits are made available ... enterprises whether engaged in the development of
infrastructure or under BOT. Hence, it clearly indicates that the
Government of India with a view to develop
