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TMI Blog2019 (8) TMI 1831X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax-Circle 8(3)(1), Mumbai (in short DCIT/ITO/ AO) for AY 2014-15 vide dated 30.12.2016, under section 143(3) of the Income-tax Act, 1961 (hereinafter 'the Act'). 2. The first issue in this appeal of assessee, in ITA No. 1204/Mum/2018, is as regards to the order of CIT(A) confirming the action of the AO in disallowing claim of depreciation on an amount paid to DoT for purchase of 3G Spectrum. For this assessee has raised the following ground No.1: - "1. Erred in upholding the order of Assistant Commissioner of Income Tax 8(3)(1), Mumbai ('AO') for disallowing depreciation claim of Rs. 132.67 Crs. under section 32 of the Act on amount paid to DoT for purchase of 3G Spectrum and restricting the allowance thereof to Rs. 62 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated 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 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. Accordingly, we quash the revision order." 4. When this was confronted to the learned CIT Dr, he only relied on the order of the AO and that of the CIT(A). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ia) of the Act. For this Revenue has raised, the following two grounds: - "1. Whether on the facts and circumstances of the case and in law, the learned CIT(A) has erred in deleting the disallowance of Rs. 58,32,12,839/- made under section 40(a)(ia) of the I.T. Act 1961 without properly appreciating the factual and legal matrix as clearly brought out by the Assessing Officer. 2. whether on the facts and circumstances of the case and in law, the learned CIT(A) has erred in deleting the disallowance made under section 40(a)(ia) of the I.T. Act 1961 despite the fact that the assessee had failed to deduct TDS and that the provisions of Section 40(a)(ia) are very clear and there is no ambiguity which calls for any judicial pronouncement." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter connectivity services are rendered automatically without any human intervention. It is evident from the order passed under sections 201(1) and 201(1A), that the Assessing Officer relying upon the technical report obtained in case of Vodafone Essar (Supra), has raised the demand against the assessee inferring that roaming charges ware in the nature of fees for technical services, hence, coming within the purview of section 194J. However, as stated earlier, the very same report from the technical expert in case of Vodafone Essar Mobile Services Ltd., was considered and analysed by the Tribunal, Kolkata Bench (supra) and the Bench held that there is no human intervention in providing the roaming services. That being the case, following th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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