2019 (3) TMI 163

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.... 3. Brief facts of the case are that the ld. CIT in this case has passed an order u/s. 263 of the Act. The subject matter of revision as noted in the order for A.Y. 2012-13 were as under: Depreciation amounting to Rs. 2,44,65,94,092/- @ 25% on the WDV of the intangible asset of Rs. 9,78,63,76,368/- (Rs.12,90,83,26,992 + Rs. 12,01,49,856 - Rs. 3,24,21,00,480) which was arrived by the assessee after considering the deduction claimed u/s. 32 of the Act in earlier years, was wrongly allowed as claimed u/s. 32 of the Income Tax Act, 1961. The same was required to be amortized over the period of license in force as per provisions of Section 35ABB of the Income Tax Act, 1961. 4. The fact for the other assessment year was the same. Afte....

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....a) on same issue has concluded that the assessee was entitled to depreciation. We may gainfully refer to the concluding part of the said judgment which reads as under: 20. From the above judgment of Hon'ble Supreme Court in the case of Smifs Securities Ltd. (supra) and the facts of the present case, it is clear that the assessee has rightly claimed depreciation under section 32 of the Act on 3G spectrum. It means that the expenditure towards 3G Spectrum is not expenditure for acquiring any right to operate telecommunications services. Out of the service areas in which 3G spectrum was won by the assessee, it had acquired the rights to operate telecommunication services in the year 1995-1997 for Maharashtra, Gujarat, Uttar P....

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....the allowance to Rs. 62.89 crores being proportionate amount as applicable for the year as per provisions of section 35ABB of the Act is concerned, it is seen from the submission of the appellant that the issue is covered in favour of the appellant by the decision of the jurisdictional Tribunal in the case of Idea Cellular Limited (in ITA 360/Mum/2016) wherein the Hon'ble Tribunal has held that the assessee has rightly claimed depreciation on the fees paid for acquisition of 3G spectrum. Relevant extract of the judgment is reproduced as below: "20. From the above judgment of Hon'bie Supreme Court in the case of Smifs Securities Ltd. (supra) and 4 the facts of the present case, it is clear that the assessee has rightly claim....