Rule 6A - Expenditure for obtaining right to use spectrum for telecommunication services

Payment actually made for spectrum fees defined as upfront equivalent; termination requires recomputation of taxable income.

Rule 6A treats 'payment has actually been made' for spectrum-right expenditure: an upfront election means the actual payment is treated as made irrespective of accounting-year liability; a deferred election means the sum equal to the upfront amount is treated as paid irrespective of accounting-year liability. If deferred payment conditions are breached and the spectrum allotment is terminated, the Assessing Officer shall re-compute income by deeming the total fee paid up to termination as 'actually been made' and that the spectrum was in force until termination for determining the relevant previous year.