9911796707
TMI Blog2025 (5) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment Unit, Income Tax Department (hereinafter referred to as "AO") under Section 143(3)read with section 144B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for Assessment Year 2021-22. 2 Brief facts, appellant company is a Public Limited Company, engaged in business of providing remote infrastructure management service and telecommunication service. The appellant company paid an amount of Rs. 2,27,94,115/- on the basis of percentage of Adjusted Gross Revenue under the new revenue sharing regime effective from August 1, 1999, to the Government of India, Department of Telecommunication in consideration for grant of license to operate and provide the services for a period of twenty years with effect from financial y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantum of payments to be made will not change the character of the rights acquired or the nature of the payments. He finally held that the payment of license fees is capital in nature and the license fee paid by the appellant during the year is to be amortized in accordance with the provisions of Section 35ABB of the Act. Consequently, in view of the facts that the license was granted with effect from financial year 2014-15 for a period of 20 years, fourteen years still remain for the license to expire, he allowed one fourteenth of total expenses of Rs. 2,27,94,115/- i.e. Rs. 16,28,151/- and remaining amount i.e. Rs. 2,11,65,964/- is disallowed for year under consideration and to be allowed, according to provision of section 35ABB of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1 Thus in view of subsequent development through judgment of Hon'ble Apex Court in Bharti Hexacom (supra), appellant according to its written submission before First Appellate Aurhority has raised application dated 9.5.2024 for admission of additional ground for claiming deduction in respect of amount of license fee disallowed in the proceedings of past assessment years. However from perusal of finding of First Appellate Authority it is unequivocal that he has neither admitted nor rejected the aforesaid additional grounds of appeal and consequently recorded his finding on the same and, has merely proceeded to sustain the decision of disallowance made by ld. AO, which even appellant does not disputes as of now. He thus finally sustain the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... result ground of appeal is allowed for statistical purpose. Ground No. 4:- 7. The appellant vide ground 4 of grounds of appeal has challenged the computation of tax payable of Rs. 51,31,916/- in view of the facts that the order of assessment has been concluded at an assessed loss of Rs. 53,55,148/-. 7.1 In the facts of the appellant company has returned loss of Rs. 2,65,21,112/-, which after making the disallowance by ld. AO has been reduced to Rs. 53,55,148, thus, we are inclined to accept the contention of appellant that computation of tax payable of Rs. 51,31,916/- is invalid and therefore, the same is directed to be deleted and in the result, ground of appeal is allowed. 8. In the result, the appeal of the assessee in ITA No. 4965/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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