whether the same is capital in nature, Section
35ABB of the Act.
Brief facts of the case:
6. The National Telecom Policy ... allowed as a deduction under Section
35ABB of the Act and the remaining amount of Rs. 10,89,74,250/- was
disallowed and added back
following:
"22. Please
furnish the detailed working deduction claimed u/s. 35ABB of
Rs.27,62,40,888/- and justify your claim.
27.Please ... dated 15.9.2005. Such letter contained explanation with respect to
deduction under section 35ABB of the Act as under :
"2. In
respect of following expenditure
which was described as 'deduction under section 35ABB in respect of licence-fees to operate telecom services'. Page 2 contains the details ... expenditure as the same could not be claimed as section 35ABB is introduced with retrospective effect from
expenditure or capital expenditure which is
required to be amortized under Section 35ABB of the Income Tax
Act, 1961 (Act, for short ... very outset, we would like to reproduce Section 35ABB,
which reads:
"35ABB.(1) In respect of any expenditure, being in the
nature of capital
involves I.T. Tax
effect of Rs.4647.88 lakhs.
2. Section
35ABB of the Income Tax Act, 1961 provides for amortization of
license ... considered the same for amortization
by invoking the provisions of Section 35ABB . Accordingly one-eleventh
of Rs.982917915/-/- was allowed as deduction.
It
was seen
thefact that asscssee failed to withdraw its claim of deduction under Section 35ABB, despite the fact that the deduction was not: available in light ofthe ... amended provisions of Section 35ABB, coming into iforce retrospectivelywith effect from 1-4-1996.
2. The Tribunal by its impugned order held as under
specifically
provided so therein as in Sections 35A and 35ABB of the Act;
Uday S. Jagtap 8 of 19
::: Uploaded on - 27/04/2018 ::: Downloaded ... later Sections
35ABA of the Act (w.e.f. 2017) and Section 35ABB of the Act (w.e.f.
1996) has also provided for deduction
which
expenditure was claimed, was disallowed by the AO, under Section
35ABB. The relevant discussion by the Assessing Officer is as
follows ... over a period of
17 years as per the provisions u/s 35ABB. Accordingly, the
licence fees amounting
proportion to the period
17
For instance, Section 35A, 35AB (3); 35ABB; 35D (5); 35DDA; 35E; 41 (1) (Any benefit accrued by the
amalgamated
scientific research, section 35AB
deals with expenditure on know-how and section 35ABB deals
with expenditure for obtaining licence to operate
telecommunication services. Section 35AC
