Rule 6A - Expenditure for obtaining right to use spectrum for telecommunication services - Income-tax Rules, 1962

1 [ 6A.Expenditure for obtaining right to use spectrum for telecommunication services .-(1) For the purpose of section 35ABA, the term payment has actually been made shall mean,- (a) where an assessee has opted and been allowed by the Department of Telecommunications, Government of India to make full upfront payment of spectrum fee, the actual payment of expenditure irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee; (b) where an assessee has opted and been allowed by the Department of Telecommunications, Government of India to make deferred payment, the amount which would have been payable by the assessee had he opted for full upfront payment of spectrum fee irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee. (2) In case of deferred payment referred to in clause (b) of sub- rule (1), where there is failure by the assessee to comply with any of the conditions specified by the scheme of the Department of Telecommunications, Government of India and Department of Telecommunications terminates the allotment or assignment of spectrum, the Assessing Officer shall, in exercise of power vested in him under sub-section (3) of section 35ABA shall re-compute the total income of the assessee for the previous year in which the deduction has been claimed and granted to him by deeming that,- (i) the total amount of spectrum fee paid up to the date of termination is the amount of payment actually been made ; (ii) the spectrum was in force up to the date of its termination for the purpose of computing relevant previous year ; ] ************* NOTES:- 1. Inserted by the IT (Twenty-fourth Amdt.) Rules, 2016 , w.e.f. 04-10-2016. Earlier, rule 6A was inserted by the IT (Third Amdt.) Rules, 1970 and later on amended by the IT (Seventh Amdt.) Rules, 1977, w.e.f. 01-11-1977 and omitted by the IT (Thirty-second Amdt.) Rules, 1999, w.e.f. 19-11-1999.