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2023 (7) TMI 927 - AT - Income TaxAmortization of variable licence fee - addition u/s 35ABB or Allowable revenue expenditure u/s 37(1) or not? - AO show caused the assessee as to why this amount should not be amortized over the remaining period of licence in case of each circle u/s 35ABB of the Act instead of allowing it as revenue expenditure - CIT(A) deleted the same and allowed the expenditure as revenue expenditure by following the decision of Hon’ble Jurisdictional High Court in assessee’s own case. [2013 (12) TMI 1115 - DELHI HIGH COURT] - HELD THAT:- We find that since the relief has been granted by the Ld. CIT(A) by following the decision of Hon’ble Jurisdicitonal High Court in assessee’s own case on the impugned issue, we do not find any infirmity in the order of the Ld. CIT(A). Decided against revenue. Disallowance towards Subscriber Verification Penalty u/s 37(1) - violation of KYC norms - assessee is supposed to follow the Know Your Customer (KYC) norms stipulated by DOT and when there is deficiency in adhering to aforesaid KYC norms, the DOT Enforcement, Resources and Monitoring Cell, after audit of the company, levies penalty on the assessee - HELD THAT:- We find that this issue is already settled in favour of the assessee by decision of this Tribunal in assessee’s own case for AY 2015-16 [2023 (7) TMI 232 - ITAT DELHI] held that payment made towards penalty for violation of KYC norms would not fall within the ambit of Explanation 1 to section 37(1) of the Act. Decided in favour of assessee. TDS u/s 194H - Disallowance of expenditure u/s 40(a)(ia) - assessee sells the pre-paid SIM Card with available talk time worth Rs. 100/- at a discounted price of Rs 70 to the distributors - HELD THAT:- As decided in assessment year 2015-16 own case [2023 (7) TMI 232 - ITAT DELHI] provisions of section 194H are not attracted to the discounts given to distributors. Hence, section 40(a)(a) would not be applicable. Decided in favour of assessee.
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