India Ltd. for
construction of the project. On completion of the BOT project on 20 th
September 2004, the assessee started its commercial operation ... which
revealed that the assessee has not developed the infrastructure facility
(BOT Project) for which it has claimed deduction under section 80IA
after claiming
depreciation on the BOT project constructed by it. Originally, assessment was
completed under section 143(3) of the Act vide order dated ... disallowing assessee's claim of depreciation on the BOT project.
3. Against the re-assessment order passed disallowing claim of depreciation,
assessee filed appeal
financial
year 2008-09 and 2009-10 from cost of BOT project for computing
deferred revenue expenditure.
6. By the impugned order CIT(A) declined ... directed the AO to consider entire cost of BOT
project of Rs.380,11,68,820/- without reducing grant received
historically been the preserve for the public sector. In a BOT project a private company is given a concession to build and operate a facility ... further contended that even in a BOT project, the basic guidelines and specifications are laid down by the Government and in support of his contention
construction period. Further,
expenditure incurred by the assessee on such BOT projects brings to it an
enduring benefit in the form of right to collect ... period. Therefore, analogously, expenditure
incurred on an infrastructure project for development of roads/highways
under BOT agreement may be treated as having been made/incurred
Jetpur- Rajkot Road Project. The said
project has been assigned to the assessee as a
concessionaire on 'Built-Operate-Transfer (BOT) basis ... construction
period. Further, expenditure incurred by the
assessee on such BOT projects brings to it an
enduring benefit in the form of right to collect
construction of development of infrastructure facility on
roads/highways under BOT project was to be amortized evenly over
the period of concessionaire agreement after excluding ... construction on development of
infrastructure facility of roads/highways under BOT projects was to be
amortized and evenly spread over the period of concessionaire
agreement
assessee on infrastructure facility for
development of roads/highways under the BOT project may be amortized
evenly over the period of the concessionaire agreement after ... concession period. Therefore, assessee has capitalized the cost incurred on the BOT project
on which it has claimed depreciation. Thus, in our view, the expenditure
assessee for constructing the infrastructure facility i.e roads/highways under BOT project were
not eligible for claim of depreciation under ... concession period. Therefore, assessee has capitalized the cost incurred on the BOT project
on which it has claimed depreciation. Thus, in our view, the expenditure
assessee, it is regarding treatment of capitalization of cost
incurred on BOT project, hence, the judgment is not applicable on the
fact of the assessee ... construction period.
Further, expenditure incurred by the assessee on such BOT projects brings
to it an enduring benefit in the form of right to collect
