#infrastructure projects

Bombay High Court permits diversion of 9.2498 hectares of mangrove forest for an 8-lane highway to Vadhavan Port, holding that public utility outweighs environmental concerns under the Public Trust Doctrine, subject to strict compensatory afforestation. The ruling sets a precedent for future infrastructure projects requiring environmental clearances.

The ITAT Mumbai has ruled that the right to receive annuity payments under a DBFOT highway contract constitutes an intangible asset under Section 32(1)(ii) of the Income Tax Act, enabling depreciation claims. This sets a critical precedent for infrastructure financiers and SPVs structured under public-private partnerships, clarifying the tax treatment of future revenue streams as depreciable capital assets.

Madras High Court affirms that state-induced loss of access to private land triggers a legal duty to provide lawful entry, directing authorities to decide representations on merits within twelve weeks. The ruling underscores that infrastructure projects cannot sever property access without due consideration, impacting landowners affected by public works like the Outer Ring Road.

CESTAT Hyderabad clarifies that RailTel's Optical Fibre Cable (OFC) laying project under a composite contract with Indian Railways qualifies as a Works Contract Service, exempt from service tax. The ruling rejects the department's classification as Business Support Service, saving RailTel ₹1.6 crore in tax demands and setting a precedent for infrastructure projects with similar contractual structures.

The J&K High Court dismissed a writ petition challenging NHIDCL's construction methodology, reaffirming that courts cannot override technical decisions of public bodies unless arbitrariness or procedural illegality is established. The ruling underscores that expert recommendations are advisory, not binding, and judicial intervention is limited to ensuring fairness, not substituting expertise.