https://www.taxtmi.com/caselaws?id=444563 Where a telecom licence confers a composite right to establish, maintain and operate services, periodic payments made to keep that licence alive remain part of the consideration for acquiring and continuing that capital right. The annual variable licence fee under the 1999 regime was therefore capital expenditure falling within Section 35ABB and not revenue expenditure deductible under Section 37. The fee could not be split into capital and revenue components merely by reference to payments made before and after 31 July 1999, because both payment forms related to the same underlying licence obligation. The outgoing was thus wholly capital, with only statutory amortisation available. en-us Mon, 16 Oct 2023 00:00:00 +0530 Mon, 08 Jun 2026 17:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444563 Where a telecom licence confers a composite right to establish, maintain and operate services, periodic payments made to keep that licence alive remain part of the consideration for acquiring and continuing that capital right. The annual variable licence fee under the 1999 regime was therefore capital expenditure falling within Section 35ABB and not revenue expenditure deductible under Section 37. The fee could not be split into capital and revenue components merely by reference to payments made before and after 31 July 1999, because both payment forms related to the same underlying licence obligation. The outgoing was thus wholly capital, with only statutory amortisation available. Case-Laws Income Tax Mon, 16 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444563