NHAI Grant Not Deductible from Project Cost: ITAT Upholds Deletion of ₹43.43 Crore Depreciation...

The ITAT has upheld the deletion of a ₹4,343 crore depreciation disallowance, ruling that NHAI (National Highways Authority of India) grants are "not deductible from project cost." This significant decision clarifies the tax treatment of grants received by infrastructure developers from NHAI. The ITAT concluded that these grants are capital in nature and do not reduce the cost of the project for depreciation purposes. This ruling provides clarity to infrastructure companies regarding their depreciation claims and reduces their tax liabilities, encouraging investment in national infrastructure projects.