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2020 (1) TMI 403 - AT - Income TaxDisallowance u/s 14A r.w.s 8D - HELD THAT:- We find that the mutual funds, which are the subject matter of computation of disallowance, are neither in the opening balance nor in the closing balance. This means that the mutual funds have been purchased and sold during the year itself. u/r 8D, the average of value of investment income from which does not form part of total income as appearing in the balance sheet of the assessee on the 1st day and last day of previous year have been mentioned. Since the average value of investment appearing in the balance sheet on the 1st day and last day is NIL, we are in agreement with the contention of the ld. counsel for the assessee that it is impossible to compute the disallowance either in Rule 8D(ii) or 8D(iii). On peculiar facts of the case in hand, we direct the Assessing Officer to delete the disallowance. Licence fee paid to Government of India department of Telecommunication in consideration for grant of licence to operate and provide services - AO was of the opinion that the expenses incurred on license fee are capital expenditure as per Section 35ABB - HELD THAT:- Since the Revenue is in the process of filing appeal before the Hon'ble High Court the additions have been made. We are of the considered opinion that since the impugned issue is covered by the decision of the coordinate bench in assessee’s own case for Assessment Year 2007-08 [2015 (1) TMI 924 - ITAT DELHI] as held if any expenditure on account of licence fee was payable up to 31.07.1999, it should be treated as capital expenditure and the licence fee on revenue sharing basis after 01.08.1999 should be treated as revenue in nature. - Decided in favour of assessee. TDS claimed on the deferred Revenue - HELD THAT:- We find that section 199(3) of the Act gives power to the Board to make such rules for the purposes of giving credit in respect of tax deducted or tax paid in terms of provisions of the Act and also A.Y for which such credit may be given. Rule 37BA(3)(ii) provides that where tax has been deducted at source and paid to Central Government and income is sustainable over a number of years, credit for tax deducted at source shall be allowed across those years in same proportion in which income is assessable to tax. We, accordingly, direct the Assessing Officer to give proportionate credit of TDS for the income declared during the year under consideration. With these directions, Ground no. 3 is allowed.
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