Depreciation on 3G spectrum fees upheld; Revenue's TDS-based disallowance challenge failed on binding precedent.

The Tribunal followed its earlier decision in the assessee's own case and a co-ordinate Bench ruling, holding that 3G spectrum fees were eligible for depreciation under section 32. On that binding precedent, the Revenue's objection based on alleged failure to deduct tax at source under section 194H did not survive, and the disallowance under section 40(a)(ia) was not restored. The relief granted by the CIT(A) was therefore sustained.

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Issues: Whether the Revenue was justified in challenging the deletion of disallowance under section 40(a)(ia) on the alleged failure to deduct tax at source under section 194H and the allowance of depreciation under section 32 on 3G spectrum fees.

Analysis: The issue was held to be covered by the Tribunal's earlier decision in the assessee's own case and by the co-ordinate Bench decision relied upon therein. Following the binding coordinate Bench precedent, the Tribunal accepted that the payment towards 3G spectrum fees was eligible for depreciation under section 32 and that the Revenue's objection did not survive. The Tribunal therefore followed the earlier view and upheld the relief granted by the CIT(A).

Conclusion: The Revenue's challenge failed and the relief granted to the assessee was sustained.

Ratio Decidendi: Where the issue is already covered by a co-ordinate Bench decision in the assessee's own case, the Tribunal will follow that precedent and sustain depreciation on 3G spectrum fees under section 32, thereby rejecting the Revenue's contrary disallowance under section 40(a)(ia) and section 194H-based objection.

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