allowable as a
revenue expenditure and it should be amortised under section 35ABB
of the Act.
4.2 On the facts and circumstances of the case ... capital expenditure amortizable
under section 35ABB of the Act.
5. Ground No. 5 - Disallowance of unexplained investment
5.1 On the facts and circumstances
right
to use spectrum and hence covered it under section 35ABB of the Act.
After allowing depreciation @ 25%, he made an addition ... record. It is observed that the AO invoked the provisions of
section 35ABB for making the addition. This section, in turn,
5
ITA Nos.1950
instant case depreciation cannot
be given as there is a specific section 35ABB by virtue of which, an
expense incurred for obtaining license to operate ... amount is admissible as deduction only in
the manner provided u/s.35ABB of the Act, upheld the disallowance
made by the Assessing Officer
further directing the AO to instead allow deduction
under section 35ABB of the Act on the same on the ground that the
spectrum was only ... incorrect being not examined in accordance with provisions
contained under section 35ABB and thereby held the assessment
order framed under section
capital in nature.
Ground No. 2.: Disallowance of Additional claim u/s 35ABB of the Act.
1. On the fact and in the circumstances ... additional ground in allowing deduction u/s
37 or u/s 35ABB fo the Act on Revenue Share Expenses on the ground that the
claim
income which were subsequently revised and in revised return claim u/s 35ABB of the
Act was made on account of license fees paid ... year under consideration in accordance with sub-section (2) of
section 35ABB , For this main reliance of the assessee was on the provision of section
allowing and/ or directing
the assessing officer to allow benefit of section 35ABB of the Act in respect
of the amount held to be capital ... capital in nature and should be
amortized in terms of section 35ABB of the Act over the remaining period of the
License.
9.4 In pursuance
erred in holding that
such expenditure is still amortizable under section 35ABB of
the Act, solely on reason that specific provision of 35ABB ... Appellant and allowed the
Appellant to amortized the same under Section 35ABB of the Act
concluding as under:
(a) Right to use the spectrum emanates
Idea Cellular Ltd.)
(iv) The assessee has claimed deduction u/s 35ABB in respect of fixed license fees
which included amortized cost in respect ... point No. (iv) reasons recorded on the
allowability of deduction u/s.35ABB of the Act in respect of fixed licence
fee is concerned, this
preferred by assessee and
revenue regarding allowability of license fee u/s 35ABB of The Income
Tax Act(in short the ‗Act') paid ... 35ABB being 1/10th of the migration fees
of Rs 22,22,52,249/- as paid over the period of 10 years as per
license
