CIT v. Bharti Hexacom Ltd.

DCIT, New Delhi vs. Hcl Comnet Systems & Services Ltd., New Delhi

In the result, the appeal of the assessee is allowed

Bench: Ms. Sushma Chowlashri N.K. Billaiya

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI [THROUGH VIDEO CONFERENCE] BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER ITA No. 5555/DEL/2014 [A.Y 2005-06] ITA No. 6162/DEL/2013 [A.Y 2006-07] ITA No. 835/DEL/2014 [A.Y 2008-09] HCL Comnet Systems and Services Ltd Vs. The Dy. C.I.T 806, Sidharth, 96 Nehru Place Circle – 12(1) New Delhi New Delhi PAN: AAACH 3130 M ITA No. 5924/DEL/2014 [A.Y 2005-06] ITA No. 6181/DEL/2013 [A.Y 2006-07] ITA No. 922/DEL/2014 [A.Y 2008-09] The Dy. C.I.T Vs. HCL Comnet Systems and Services Ltd Circle – 12(1) 806, Sidharth, 96…

Hcl Comnet Systems and Services Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee in ITA No

Bench: Ms. Sushma Chowlashri N.K. Billaiya[A.Y 2011-12]

…1 IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER [A.Y 2011-12] HCL Comnet Systems and Services Ltd Vs. The Dy. C.I.T 806, Sidharth, 96 Nehru Place Circle – 11(1) New Delhi New Delhi PAN: AAACH 3130 M (Applicant) (Respondent) Assessee By : Shri Ajay Vohra, Sr. Adv Shri Aditya Vohra, Adv Department By : Shri S.N. Meena, Sr. DR Date of Hearing : 17.12.2019 Date of Pronouncement : 31.12.2019 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the assessee is preferred against the order of the Commi…

At & T Global Network Services (India) Private Limited, New Delhi vs. ACIT Special Range-1, New Delhi

In the result, the appeal of the assessee is allowed

Bench: Ms. Sushma Chowla & Shri Prashant Maharishi

…der section 55ABB of the Act. 6.2. On the facts, in the circumstances of the case and in law, the Ld. AO/DRP erred in not following the judgment of the Hon'ble Assessment Year: 2015-16 jurisdictional Delhi High Court in the case of Bharti Hexacom Ltd. [2014] 265 CTR 130 (Delhi) wherein it was held that annual revenue share based license fee paid by the telecom operators is revenue expenditure, allowable under section 37(1) of the Act and not a capital expenditure amortizable under section 35ABB of the Act. 6.3. On the facts, in the circumstances of the case and in law, the Ld. AO/DRP erred in ignoring that the a…

ACIT, New Delhi vs. M/S Bharti Telemedia Ltd., New Delhi

Accordingly appeal filed by the revenue is dismissed

Bench: Smt Beena A Pillai & Shri Prashant Maharishiacit, Vs. M/S. Bharti Telemedia Ltd, Circle-4(2), Bharti Crescent 1, Nelson New Delhi Mandela Road, Vasant Kunj, Phase-Ii, New Delhi Pan: Aadcb0147R (Appellant) (Respondent)

…INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “A”: NEW DELHI BEFORE SMT BEENA A PILLAI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER ACIT, Vs. M/s. Bharti Telemedia Ltd, Circle-4(2), Bharti Crescent 1, Nelson New Delhi Mandela Road, Vasant Kunj, Phase-II, New Delhi PAN: AADCB0147R (Appellant) (Respondent) Revenue by : Shri S. N. Pandey, Sr. DR Assessee by: Shri Gaurav Wadhwa, CA Shri Vinay Meena, CA Date of Hearing 15/05/2019 Date of pronouncement 31/07/2019 O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by the Asst Commissioner of income tax, circle – 4 (2), New Delhi (the learn…

At & T Global Network Services (India) Pvt. Ltd., New Delhi vs. Addl. CIT, Special Range- 1, New Delhi

Appeal of the assessee is partly allowed for statistical purpose

Bench: Shri N. K. Billaiya & Ms Suchitra Kamble

…it should be amortised under section 35ABB of the Act. 6.2. On the facts, in the circumstances of the case and in law, the Ld. AO/DRP erred in not following the judgment of the Hon'ble jurisdictional Delhi High Court in the case of Bharti Hexacom Ltd. [2014] 265 CTR 130 (Delhi) wherein it was held that annual revenue share based license fee paid by the telecom operators is revenue expenditure, allowable under section 37(1) of the Act and not a capital expenditure amortizable under section 35ABB of the Act. 6.3. On the facts, in the circumstances of the case and in law, the Ld. AO/DRP erred in ignoring that the…

ACIT, New Delhi vs. M/S Microwave Communication Ltd., New Delhi

The appeals are partly allowed

Bench: Shri R.K. Panda & Shri Kuldip Singh

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’ : NEW DELHI) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER and SHRI KULDIP SINGH, JUDICIAL MEMBER ITA No.4386/Del./2016 (ASSESSMENT YEAR : 2009-10) ACIT, vs. M/s. Microwave Communication Ltd. 1st Floor, 8, Masjid Moth, Central Circle 25, New Delhi. Greater Kailash Part – II, New Delhi – 110 048. (PAN : AAACM3430B) (APPELLANT) (RESPONDENT) ASSESSEE BY : None REVENUE BY : Shri N.K. Bansal, Senior DR Date of Hearing : 03.06.2019 Date of Order : 10.06.2019 O R D E R PER KULDIP SINGH, JUDICIAL MEMBER : Appellant, ACIT, Central Circle 25, New Delhi (hereinafter…

At & T Global Network Services (India) Pvt. Ltd., New Delhi vs. JCIT, Special Range-1, New Delhi

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

Bench: Shri R.K. Panda & Smt. Beena A. Pillai

…uld be amortised under section 35ABB of the Act. 6.2 On the facts, in the circumstances of the case and in law, the Ld. AO/Hon’ble DRP erred in not following the judgment of the Hon’ble jurisdictional Delhi High Court in the case of Bharti Hexacom Ltd. [2014] 265 CTR 130 (Delhi) wherein it was held that annual revenue share based license fee paid by the telecom operators is revenue expenditure, allowable under section 37(1) of the Act and not a capital expenditure amortizable under section 35ABB of the Act. 6.3 On the facts, in the circumstances of the case and in law, the Hon’ble DRP erred in ignoring that afore…

M/S at & T Global Network Services (India) Pvt. Ltd., Gurgaon vs. JCIT, New Delhi

In the result, both the appeals filed by the assessee are partly allowed for statistical purposes

Bench: Shri R.K. Panda & Smt. Beena A. Pillai

…uld be amortised under section 35ABB of the Act. 6.2 On the facts, in the circumstances of the case and in law, the Ld. AO/Hon’ble DRP erred in not following the judgment of the Hon’ble jurisdictional Delhi High Court in the case of Bharti Hexacom Ltd. [2014] 265 CTR 130 (Delhi) wherein it was held that annual revenue share based license fee paid by the telecom operators is revenue expenditure, allowable under section 37(1) of the Act and not a capital expenditure amortizable under section 35ABB of the Act. 6.3 On the facts, in the circumstances of the case and in law, the Hon’ble DRP erred in ignoring that afore…

M/S. Hughes Communication India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

…@ 25%, he made an addition of Rs.4,29,57,800/-. The assessee assailed the assessment order before the ld. CIT(A) on this score. The ld. first appellate authority considered the judgment of the Hon’ble Delhi High Court in CIT vs. Bharti Hexacom Ltd. (2014) 265 CTR 130 (Del) and directed the AO on the following lines:- “The Assessing Officer is therefore directed to verify • Whether payment is being made as per 1994 agreement or 1999 agreement. • Whether the payment includes any interest on delayed payment of license fee payable for period prior to July 1999. • Whether the 1999 agreement in the case of the app…

M/S. Hughes Communication India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

…@ 25%, he made an addition of Rs.4,29,57,800/-. The assessee assailed the assessment order before the ld. CIT(A) on this score. The ld. first appellate authority considered the judgment of the Hon’ble Delhi High Court in CIT vs. Bharti Hexacom Ltd. (2014) 265 CTR 130 (Del) and directed the AO on the following lines:- “The Assessing Officer is therefore directed to verify • Whether payment is being made as per 1994 agreement or 1999 agreement. • Whether the payment includes any interest on delayed payment of license fee payable for period prior to July 1999. • Whether the 1999 agreement in the case of the app…

M/S. Hughes Communication India Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

…@ 25%, he made an addition of Rs.4,29,57,800/-. The assessee assailed the assessment order before the ld. CIT(A) on this score. The ld. first appellate authority considered the judgment of the Hon’ble Delhi High Court in CIT vs. Bharti Hexacom Ltd. (2014) 265 CTR 130 (Del) and directed the AO on the following lines:- “The Assessing Officer is therefore directed to verify • Whether payment is being made as per 1994 agreement or 1999 agreement. • Whether the payment includes any interest on delayed payment of license fee payable for period prior to July 1999. • Whether the 1999 agreement in the case of the app…

DCIT, New Delhi vs. M/S. Hughes Communication India Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

…@ 25%, he made an addition of Rs.4,29,57,800/-. The assessee assailed the assessment order before the ld. CIT(A) on this score. The ld. first appellate authority considered the judgment of the Hon’ble Delhi High Court in CIT vs. Bharti Hexacom Ltd. (2014) 265 CTR 130 (Del) and directed the AO on the following lines:- “The Assessing Officer is therefore directed to verify • Whether payment is being made as per 1994 agreement or 1999 agreement. • Whether the payment includes any interest on delayed payment of license fee payable for period prior to July 1999. • Whether the 1999 agreement in the case of the app…

DCIT, New Delhi vs. M/S. Hughes Communication India Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

…@ 25%, he made an addition of Rs.4,29,57,800/-. The assessee assailed the assessment order before the ld. CIT(A) on this score. The ld. first appellate authority considered the judgment of the Hon’ble Delhi High Court in CIT vs. Bharti Hexacom Ltd. (2014) 265 CTR 130 (Del) and directed the AO on the following lines:- “The Assessing Officer is therefore directed to verify • Whether payment is being made as per 1994 agreement or 1999 agreement. • Whether the payment includes any interest on delayed payment of license fee payable for period prior to July 1999. • Whether the 1999 agreement in the case of the app…

DCIT, New Delhi vs. M/S. Hughes Communication India Ltd., New Delhi

In the result, the appeal of the assessee is partly allowed and that of

Bench: Shri R.S. Syal & Smt. Beena A. Pillai

…@ 25%, he made an addition of Rs.4,29,57,800/-. The assessee assailed the assessment order before the ld. CIT(A) on this score. The ld. first appellate authority considered the judgment of the Hon’ble Delhi High Court in CIT vs. Bharti Hexacom Ltd. (2014) 265 CTR 130 (Del) and directed the AO on the following lines:- “The Assessing Officer is therefore directed to verify • Whether payment is being made as per 1994 agreement or 1999 agreement. • Whether the payment includes any interest on delayed payment of license fee payable for period prior to July 1999. • Whether the 1999 agreement in the case of the app…

At & T Global Network Services (I) Pvt Ltd, Gurgaon vs. ACIT, New Delhi

In the result appeal of the assessee in ITA No 1059/Del/2015 is partly allowed

Bench: Shri I. C. Sudhir & Shri Prashant Maharishiat & T Global Network Services Dcit, (India) Pvt Ltd., Circle-2(1), Vs. Vatika Lok-1, Block-A, Gurgaon New Delhi Pan:Aafca8810L (Appellant) (Respondent) Dcit, At & T Global Network Services Circle-2(1), (India) Pvt Ltd., Vs. New Delhi Vatika Lok-1, Block-A, Gurgaon Pan:Aafca8810L (Appellant) (Respondent)

…ty of the revenue based license fees u/s 37(1) of the Act was a subject matter of dispute and the Hon‘ble Delhi High Court had the occasion to look into this aspect and hold in favour of the telecom company in the case of CIT vs. Bharti Hexacom Limited [2014] 265 CTR 130 (Delhi). In the said decision, the Hon‘ble Delhi High Court has held the revenue share based license fee is an 13 | P a g e AT & T Global Network Services ( India) Private Limited V DCIT , Circle -2 (1) New Delhi ITA 1059 Del 2015 (A) & ITA No 1778/Del/2015 (D) AY 2010-11 allowable revenue expenditure u/s 37(1) of the Act. At this stage it is im…

Commissioner of Income Tax (Central)-III vs. Microwave Communications Ltd

The appeals are partly allowed

…ITA 799/2014 & conn. Page 1 $~2, 45 & 46 * IN THE HIGH COURT OF DELHI AT NEW DELHI Decided on 23rd March, 2015 + ITA 799/2014 COMMISSIONER OF INCOME TAX (CENTRAL)-III ..... Appellant versus MICROWAVE COMMUNICATIONS LTD. ..... Respondent + ITA 1738/2010 + ITA 1739/2010 CIT ..... Appellant versus MICROWAVE COMMUNICATIONS LTD ..... Respondent Presence : Ms. Suruchi Aggarwal, sr. standing counsel for the revenue Ms. Poonam Ahuja and Mr. Rohit Kumar Gupta, Advs. for the assessee CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. J…

CIT vs. M/S Triveni Oil Field Services Ltd

The appeal is disposed of

…capital‟ or „revenue expenditure‟ must be construed in a business sense and by applying sound accountancy principles unless there is a statutory mandate to the contrary. 12. Similarly in Commissioner of Income Tax versus Bharti Hexacom Limited, (2014) 265 CTR 130 (Del) it was held:- “16. ......The nature of advantage has to be considered in commercial sense and only when the advantage was in capital field, the 2014:DHC:4821-DB ITA No.142/2002 Page 13 of 15 expenditure could be disallowed by applying…

Commissioner of Income Tax vs. M/S. Triveni Oil Field Services Ltd

The appeal is disposed of

…capital‟ or „revenue expenditure‟ must be construed in a business sense and by applying sound accountancy principles unless there is a statutory mandate to the contrary. 12. Similarly in Commissioner of Income Tax versus Bharti Hexacom Limited, (2014) 265 CTR 130 (Del) it was held:- “16. ......The nature of advantage has to be considered in commercial sense and only when the advantage was in capital field, the 2014:DHC:4821-DB ITA No.142/2002 Page 13 of 15 expenditure could be disallowed by applying…