Expenditure for obtaining licence to operate telecommunication services

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..... services 2[either before the commencement of the business to operate telecommunication services or thereafter at any time during any previous year] and for which payment has actually been made to obtain a licence, there shall, subject to and in accordance with the provisions of this section, be allowed for each of the relevant previous years, a deduction equal to the appropriate fraction of the a .....

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..... uot; means 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. (2) Where the licence is transferred and the proceeds of the transfer (so far as they consist of capital sums) are less than the expenditure incurred remaining unallowed, a deduction equal t .....

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..... ions of this sub-section shall apply as if the business is in existence in that previous year. (4) Where the whole or any part of the licence is transferred and the proceeds of the transfer (so far as they consist of capital sums) are not less than the amount of expenditure incurred remaining unallowed, no deduction for such expenditure shall be allowed under sub-section (1) in respect of the pre .....

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..... rovisions of sub-sections (2), (3) and (4) shall not apply in the case of the amalgamating company; and (ii) the provisions of this section shall, as far as may be, apply to the amalgamated company as they would have applied to the amalgamating company if the latter had not transferred the licence.] 4[(7) Where, in a scheme of demerger, the demerged company sells or otherwise transfers the lice .....

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..... 996. 3. Substituted by the Finance Act, 1999, w.r.e.f. 1-4-1996. Prior to its substitution, clause (i), as inserted by the Finance Act, 1997, w.r.e.f. 1-4-1996, read as under : '(i) "relevant previous years" means the previous years beginning with the previous year in which the licence fee is actually paid and the subsequent previous year or years during which the licence, for whic .....

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