Infrastructure Companies laying Roads On BOT Basis Are Not Owners, Can't Claim Depreciation On Toll Roads: Mumbai ITAT

The Mumbai ITAT held that infrastructure companies constructing roads on a Build-Operate-Transfer (BOT) basis are not the owners of the toll roads and, thus, cannot claim depreciation on such assets. The Tribunal clarified that since ownership remains with the government and the companies only have a right to collect tolls for a specific period, they are not entitled to claim depreciation. This ruling impacts infrastructure firms by limiting their ability to reduce taxable income through depreciation claims on roads built under the BOT model.