2022 (5) TMI 1554

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..... CIT(A) has erred in deleting the addition of Rs. 1,98,09,161/- on account of license fee paid by the assessee to the Department of Telecommunication ('DOT)' by holding that the license fee was revenue in nature and allowable u/s 37 of the Income Tax Act, 1961 ('the Act'). 1.a) Whether the Ld CIT(A) has erred in not appreciating the fact the license fee paid by the assessee fee paid by the assessee is in the nature of capital expenditure for acquiring the right to operate telecommunication services and therefore, the expenses on account of license fee have to be amortized in terms of section 35-ABB of the Act, which is a special provision dealing with expenditure for obtaining license to operate telecom services. 1.b)....

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....y the Revenue considering the same as capital expenditure. The issue has been consistently held as revenue expenditure by the ld. CITs(A) in earlier assessment years starting from 2006-07 to 2014-15. Further, this disallowance has been deleted by the Co-ordinate Bench of ITAT in the assessee's case for A.Y. 2007-08 vide order dated 15.01.2015 in ITA Nos. 4546 & 5106/Del/2013 wherein the ITAT held that license fee paid under the new revenue sharing regime effective from 01.08.1999 under the New Telecom Policy would be allowed as revenue expenditure. Since, the decision of the ld. CIT(A) is based on the order of the Tribunal, we hereby decline to interfere with the order of the ld. CIT(A) on this issue. 5. In the result, the appeal of the Re....

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...., being statutorily bound to deduct tax at the time of credit or payment, whichever is earlier. As result, it becomes difficult for the assessee to keep exact correlation between the revenue booked in any financial year and the TDS deducted by the end user customers. In view of aforesaid, the assessee claimed TDS credit for the tax deducted by customers in the previous year relevant to the captioned assessment year even if a part of the related revenue has been booked in subsequent financial year(s). Further, it was submitted that this is purely a case of timing difference only and there has been no loss to Revenue. The assessee relied on the decision of the Mumbai Bench of the Tribunal in the case of Toyo Engg. India Ltd vs. JCIT: [2006] 5....

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....f the ld. CIT(A)-35 for Asstt. Year 2014- 15 in the case of assessee by observing as under: "4.5.3 The submissions of the appellant, case laws cited and relevant order have been considered. In the present case, the AO has correctly held that the TDS of Rs.2,14,814/- on deferred revenue will be allowed in the relevant assessment year in which corresponding revenue has been offered for taxation. The AO has distinguished the fads and circumstances of the case of M/s Toyo Engineering India Ltd. [5 SOT 616], which has been relied upon by the appellant I find no reason to interfere with the AO's order on this issue; Appeal on this ground is dismissed." 14. We find that this issue has been considered by the Co-ordinate Bench of ITAT in ass....