Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 1506 - HC - Income TaxDeduction towards the license fee of phase-I under Section 35ABB - Phase-I license was no longer in force - Held that:- The purport of the said questions raised by the Revenue are that Phase-II licence regime was not in continuation of Phase-I when in fact it was. It is on this basis that the amount equivalent to 1/10th of the total capital expenditure was allowed proportionately over 10 year period in accordance with Section 35ABB (1) of the Act. It provides that any capital expenditure actually incurred by the Assessee on the acquisition of any right to operate telecom services is to be allowed as a deduction in equal instalment over the period for which the licence remains in force. The concurrent findings of the ITAT and CIT (A) in this regard are not shown to be perverse or contrary to the express terms of those licenses. Consequently, the Court declines to frame the questions as posed by the Revenue at 2.1 to 2.3 above. Carry forward business loss/unabsorbed depreciation - Held that:- It is pointed out that what the Assessee claimed was brought forward unabsorbed depreciation in terms of Section 32 (2) of the Act and not unabsorbed brought forward business loss. The CIT (A) directed the AO to verify from the Respondent’s record and only permit claim relating to unabsorbed brought forward depreciation. This is not prohibited under Section 79 of the Act even when there is a change in the shareholding of the Respondent. Consequently, the Court is not inclined to frame question 2.4 as a substantial question of law.
|