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TMI Blog2019 (3) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... der existing license. The license to operate telecom services is issued u/s. 4 of the Indian Telegraph Act, 1885 which provide rights to establish and operate telecom services. As stated above, without such license one is not ever eligible to bid for 3G Spectrum. 3G Spectrum fees are merely for right to use a particular frequency/spectrum while providing telecommunication services. Even the provisions of section 35ABB of the act are not applicable to such payment In view of these facts, we are of the view that the assessee is entitled for claim of depreciation on merits also and AO has rightly allowed the claim while framing assessment under section 143(3) of the Act and the revision order of CIT Under section 263 of the Act is bad in law - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2(1). That in case the claim is made for deduction u/s.34ABB, the same may be considered as per the provisions of the law. 5. Against this order, the assessee is in appeal before us. 6. At the outset, in this regard, the ld. Counsel of the assessee submitted that this issue is squarely covered in favour of the assessee by the decision of the ITAT Mumbai Bench in the case of Idea Cellular Limited vs. Principal Commissioner of Income Tax (in ITA No. 360/Mum/2016 for A.Y. 2011-12 vide order dated 06.12.2017). The ld. Counsel of the assessee further submitted that for subsequent assessment year, the ld. CIT(A) in assessee s own case has allowed the same issue in favour of the assessee by referring to this decision of the ITAT of Idea C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adesh, Uttar Pradesh East and thereafter in the year 2007-08 for Jammu Kashmir. Even if 3G Spectrum was not applied or allotted, assessee could have still continued providing telecommunication services under existing license. The license to operate telecom services is issued u/s. 4 of the Indian Telegraph Act, 1885 which provide rights to establish and operate telecom services. As stated above, without such license one is not ever eligible to bid for 3G Spectrum. 3G Spectrum fees are merely for right to use a particular frequency/spectrum while providing telecommunication services. In view of the above, even the provisions of section 35ABB of the act are not applicable to such payment. In view of these facts, we are of the view that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iring any right to operate telecommunications services. Out of the service areas in which 3G spectrum was won by the assessee, it had acquired the rights to operate telecommunication services in the year 1995-1997 for Maharashtra, Gujarat, Ultar Pradesh West, Madhya Pradesh, Haryana, Andhra Pradesh, Kerala, Punjab telecom circles. In year 2001-02 it acquired rights for Himachal Pradesh, Uttor Pradesh East and thereafter in the year 2007-08 for Jammu Kashmir. Even if 3G Spectrum was not applied or allotted, assessee could have still continued providing telecommunication services under existing license. The license to operate telecom services is issued u/s. 4 of the Indian Telegraph Act, 1885 which provide rights to establish and operat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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