BHARTI TELEMEDIA LIMITED,NEW DELHI vs. DCIT, CIRCLE-4(2), NEW DELHI

ITA 4960/DEL/2024Status: DisposedITAT Delhi12 December 2025AY 2020-21Bench: SHRI C.N. PRASAD (Judicial Member), SHRI M. BALAGANESH (Accountant Member)52 pages
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What did the Tribunal hold?

The Tribunal held that the variable license fee paid by the assessee is deductible as revenue expenditure. It also held that the provision for interest on outstanding license fees is an ascertained liability and therefore deductible.

What were the facts?

The assessee, a DTH service provider, paid a variable license fee to the Ministry of Information and Broadcasting (MIB). The assessee claimed this fee and provision for interest on outstanding license fees as revenue expenditure. The revenue authorities disallowed these claims, treating the license fee as capital in nature and the interest as not an ascertained liability.

What were the issues?

Whether the variable license fee paid by a DTH operator is a revenue expenditure or a capital expenditure, and whether provision for interest on outstanding license fees constitutes an ascertained liability.

Which sections of the Income-tax Act were involved?

Section 35ABB,Section 37(1)

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Income Tax Appellate Tribunal, DELHI BENCH, ‘A’: NEW DELHI

Before: SHRI C.N. PRASAD & SHRI M. BALAGANESH

For Respondent: Ms. Nimisha Singh, CIT DR
Hearing: 18.09.2025Pronounced: 12.12.2025

PER C.N. PRASAD, JM,

All these appeals are filed by the assessee as well as revenue for the A.Ys 2016-17, 2020-21 and 2021-22 against different orders of the Ld. CIT(A)/NFAC, Delhi since all these appeals involve common issues, therefore, all of them were heard together and are disposed of by this common order for the sake of convenience.

2.

F

The order continues below.

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