Circular 9/2014, dated 23-4-2014

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of - Clarification on treatment of expenditure incurred for development of roads/highways in BOT agreements

What this is

Circular 9/2014, dated 23-4-2014 was issued by the Central Board of Direct Taxes on 23 April 2014. Its subject is Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of - Clarification on treatment of expenditure incurred for development of roads/highways in BOT agreements.

This is a clarification. The Board is stating how it reads a provision. That reading binds the department; it does not bind a court, and where the section says otherwise the section wins.

The instrument itself

The department publishes this one as a scanned document rather than as text, so there is nothing here for us to reproduce. The signed document is on the department’s own site — this file.

← Circular No. 10/2014 [F.No.178/84/2012-ITA-I] · Circular 8/2014, dated 31-3-2014 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.