Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
Variable licence fee paid to the Ministry for a DTH broadcasting licence was held not covered by s. 35ABB, since that provision applies only to capital expenditure for obtaining a licence to operate "telecommunication services," and DTH activity is broadcasting/distribution and not telecommunication as per TRAI definitions; consequently, the variable licence fee was allowable as revenue expenditure under s. 37(1), and the contrary reliance on telecom-licence precedent was rejected, directing allowance of the deduction. Provision for interest on outstanding/enhanced licence fee was treated as an ascertained contractual liability supported by the agreement, guidelines and demands, and was allowable under mercantile accounting; deletion of the disallowance was upheld. - ITAT
Variable licence fee paid to the Ministry for a DTH broadcasting licence was held not covered by s. 35ABB, since that provision applies only to capital expenditure for obtaining a licence to operate "telecommunication services," and DTH activity is broadcasting/distribution and not telecommunication as per TRAI definitions; consequently, the variable licence fee was allowable as revenue expenditure under s. 37(1), and the contrary reliance on telecom-licence precedent was rejected, directing allowance of the deduction. Provision for interest on outstanding/enhanced licence fee was treated as an ascertained contractual liability supported by the agreement, guidelines and demands, and was allowable under mercantile accounting; deletion of the disallowance was upheld. - ITAT
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