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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 ..... . 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 amortised in view of Section 35ABB of the Income Tax Act. In other words, the question is whether the licence fee payable by telecom service provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure will qualify for deduction as per Section 35ABB of the Act. 48. The appeal ITA No. 417/2013 by the Revenue in the case of Hutchison Essar Pvt. Ltd., pertains to the assessment year 1999-2000 i.e. year ending 31st March, 1999. It is for the period prior to the period 31st July, 1999. As per the discussion above, the licence fee payable on or before 31st July, 1999 should be treated as capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cense fee and was deductible as revenue expenditure? 50. We are inclined to pass an order of remand on this question as we find that the facts on the said aspect are not lucid and clear. In the assessment-year 2000-01, the assessment year subject matters of ITA 893/2010 and 1333/2010 in the case of Bharti Cellular Ltd. and Bharti Telenet Ltd. now known as Bharti Infotel Ltd., the assessee had pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r payment related to license fee payable period prior to 31st July, 1999 or was for the subsequent period. If interest paid was in respect of license fee payable for the period prior to 31st July, 1999, it will have to be capitalised. Similarly, if the interest was payable on license fee for the period post 31st July, 1999, it should be treated as revenue in nature/character. The contention that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the Revenue and against the respondent-assessee but with an order of remand to decide the controversy afresh keeping in view the observations made above." 5. The questions of law urged by the revenue are therefore covered in terms of the above judgment which the Court follows. The matter is accordingly remitted to AO, who shall pass appropriate orders in the light of the directions c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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