TaxTMI 
TaxTMI 
TaxTMI 
2016 (10) TMI 181
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....bstantial questions by the Revenue at pages 6 and 7 of the paper book, the questions (c) and (d) would not survive as they stand covered by a judgment and order delivered by this court in Income Tax Appeal No. 196 of 2014 and connected appeals. 3. Mr. Malhotra would submit that questions (a) and (b) at pages 6 and 7 are substantial questions of law. 4. In that, it is submitted that the assessee filed a return of income for the assessment year 2001-02 on 30th October, 2001 declaring a loss of Rs. 133,91,49,737/-, which was determined by the assessing officer at a loss of Rs. 75,04,02,061/- under section 143(3)(ii) of the Income Tax Act, 1961. 5. During the assessment proceedings, the assessing officer noted that the assessee claimed as a ....
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....navoidable circumstances. The site was not found suitable. Therefore, the expenditure incurred for the purpose of existing business of the assessee came to be written off. The assessee is a cell company and providing cellular services even today. When it decides to erect new towers, it incurs expenses. Until such stage, as the site is declared unsuitable for the operation, these expenses have to be incurred and have been shown as such in the accounts. Mr. Mistri would submit that, therefore, the treatment in the account could not be faulted. He would submit that the tribunal has rightly come to the conclusion that the concurrent orders are not in accordance with law. He would submit that all that the tribunal has gone by and applied are the....
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....hese towers that such services are provided. It is not an independent source of income. It is only to make the cellular services provided more efficient, convenient and profitable. When the towers are not exclusively meant for leasing out to third parties for earning the revenue, but used for transmission of telephone signals of assessee's own cellular services, then, it cannot be said that the towers, which are used for the assessee's own business, are new source of income. A cellular tower can be a new independent source of income, if it is erected exclusively for leasing out to the other operators. However, on facts, this was not the position and the tribunal, therefore, rightly concluded that in series of decisions, the High Cou....