Income Tax Act, 1961 – Section 35ABB – Expenditure for obtaining licence to operate telecommunication services – Payment of entry fee as well as the variable annual licence fee paid by the respondents-assessees to the DoT under the Policy of 1999 are capital in nature and may be amortised in accordance with Section 35ABB of the Act – Consequence of non-payment would result in ouster of the licensee from the trade – Thus, this is a payment which is intrinsic to the existence of the licence as well as trade itself. Such a payment has to be treated or characterized as capital only.
SUPREME COURT OF INDIA DIVISION BENCH C.I.T., DELHI — Appellant Vs. BHARTI HEXACOM LTD. — Respondent ( Before : B.V. Nagarathna and Ujjal Bhuyan, JJ. ) Civil Appeal No(S). 11128,…