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TMI Blog2015 (3) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal as recorded in the order dated 21st August, 2013, has to be answered in favour of the revenue and against the respondent assessee.Capital expenditure will qualify for deduction as per Section 35ABB of the Act. - Decided in favour of revenue. - ITA 799/2014, ITA 1738/2010, ITA 1739/2010 - - - Dated:- 23-3-2015 - S. Ravindra Bhat And R.K.Gauba JJ. For the Appellant : Ms. Suruchi Aggarwal, For the Respondent : Ms. Poonam Ahuja and Mr. Rohit Kumar Gupta, Advs. Mr. Justice S. Ravindra Bhat (OPEN COURT) 1. Admit. 2. Ms. Poonam Ahuja, Advocate accepts notice. 3. With consent of the counsel the matter was finally heard. 4. The revenue urges that the interest on payment qua the license fee, could not be amort ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f law admitted for hearing in this appeal as recorded in the order dated 21st August, 2013, has to be answered in favour of the revenue and against the respondent assessee. 49. In ITA Nos.893/2010 and 1333/2010, an additional issue arises for consideration. This additional issue relates to interest on delayed payment of license fee and whether the same was capital or revenue expenditure. By order dated 18th September, 2012, the following substantial question of law was admitted for hearing and disposal:- Whether the Tribunal fall into error in holding that the interest on the delayed payment of license fee also partook of the same nature as license fee and was deductible as revenue expenditure? 50. We are inclined to pass an ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The contention that it was a prior period expense does not appeal to us and has to be rejected, as the interest was paid during the year in question. 52. Learned counsel for the assessees has submitted that there cannot be any factual dispute that this interest was paid to the Department of Telecommunication on delayed payment of license fee under the 1999 policy and not on account of license fee payable for period prior to 31st July, 1999. We cannot from the facts on record, decipher the exact details as this aspect has not been examined by the tribunal. The tribunal has held that interest paid was revenue in nature because the license fee payable itself was revenue in nature, irrespective of fee payable prior to 31st July, 1999. We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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