CIT v. Fascel Ltd.

221 CTR 305High Court2009#5468 most cited

What is CIT v. Fascel Ltd. authority for?

Spectrum Usage Charges (SUC) and Wireless Planning Commission charges are allowable as revenue expenditure for the business. These payments are necessary for running the business and do not create an enduring benefit.

21

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Fascel Ltd. · SUC · Spectrum Usage Charges · Wireless Planning Commission charges · revenue expenditure · capital expenditure · enduring benefit · section 37(1) · section 40(a)(ia) · section 194H

Sections most often in play

Section 143(3)Section 35ABBSection 40(a)(ia)Section 194HSection 37(1)Section 260ASection 271(1)(c)Section 144B

Issues it is cited on

section 35abbsection 80iesection 35(1)(iv)section 92(1)section 10(2a)section 92asection 35(1)legal expensessection 39section 194henduring benefitdisallowance under section 40(a)(ia)

Judgments citing CIT v. Fascel Ltd.

DCIT Circle 4(2), New Delhi vs. Bharti Hexacom Ltd., Delhi

In the result, the appeals of the revenue are partly allowed as indicated above

ITA 1113/DEL/2023[2019-20]Status: DisposedITAT Delhi12 Dec 2025AY 2019-20

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 143(3)Section 194HSection 260ASection 35ASection 37(1)Section 40

…1 taxman.com 754 has allowed similar SUC as revenue expenditure taking cognizance of the fact that the same has been allowed as revenue expenditure by the AO. The Ld. Counsel further stated that the Hon’ble Delhi High Court in the case of CIT Vs. Fascel Ltd. (221 CTR 305) held that SUC, Wireless Planning Commission charges are allowable as revenue charges. He also stated that similar view has been taken by the Hon’ble Delhi Bench in the case of ACIT Vs. Vodafone West Ltd. (2025) 173 taxmann.com 585 wherein Wireless Planning Charges Commission which are similar to SUC are held to be allowable as revenue expenditur…

DCIT Circle 4(2), New Delhi vs. Bharti Hexacom Ltd., Delhi

In the result, the appeals of the revenue are partly allowed as indicated above

ITA 1112/DEL/2023[2018-19]Status: DisposedITAT Delhi12 Dec 2025AY 2018-19

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 143(3)Section 194HSection 260ASection 35ASection 37(1)Section 40

…1 taxman.com 754 has allowed similar SUC as revenue expenditure taking cognizance of the fact that the same has been allowed as revenue expenditure by the AO. The Ld. Counsel further stated that the Hon’ble Delhi High Court in the case of CIT Vs. Fascel Ltd. (221 CTR 305) held that SUC, Wireless Planning Commission charges are allowable as revenue charges. He also stated that similar view has been taken by the Hon’ble Delhi Bench in the case of ACIT Vs. Vodafone West Ltd. (2025) 173 taxmann.com 585 wherein Wireless Planning Charges Commission which are similar to SUC are held to be allowable as revenue expenditur…

DCIT Circle-4(2), New Delhi vs. Bharti Hexacom Ltd., Delhi

In the result, the appeals of the revenue are partly allowed as indicated above

ITA 1111/DEL/2023[2017-18]Status: DisposedITAT Delhi12 Dec 2025AY 2017-18

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 143(3)Section 194HSection 260ASection 35ASection 37(1)Section 40

…1 taxman.com 754 has allowed similar SUC as revenue expenditure taking cognizance of the fact that the same has been allowed as revenue expenditure by the AO. The Ld. Counsel further stated that the Hon’ble Delhi High Court in the case of CIT Vs. Fascel Ltd. (221 CTR 305) held that SUC, Wireless Planning Commission charges are allowable as revenue charges. He also stated that similar view has been taken by the Hon’ble Delhi Bench in the case of ACIT Vs. Vodafone West Ltd. (2025) 173 taxmann.com 585 wherein Wireless Planning Charges Commission which are similar to SUC are held to be allowable as revenue expenditur…

DCIT Circle 4(2), New Delhi vs. Bharti Hexacom Ltd., Delhi

In the result, the appeals of the revenue are partly allowed as indicated above

ITA 1110/DEL/2023[2016-17]Status: DisposedITAT Delhi12 Dec 2025AY 2016-17

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 143(3)Section 194HSection 260ASection 35ASection 37(1)Section 40

…1 taxman.com 754 has allowed similar SUC as revenue expenditure taking cognizance of the fact that the same has been allowed as revenue expenditure by the AO. The Ld. Counsel further stated that the Hon’ble Delhi High Court in the case of CIT Vs. Fascel Ltd. (221 CTR 305) held that SUC, Wireless Planning Commission charges are allowable as revenue charges. He also stated that similar view has been taken by the Hon’ble Delhi Bench in the case of ACIT Vs. Vodafone West Ltd. (2025) 173 taxmann.com 585 wherein Wireless Planning Charges Commission which are similar to SUC are held to be allowable as revenue expenditur…

Vodafone West Limited, (Formerly Known As Vodafone Essar Gujarat Limited), Ahmedabad vs. The Dy.CIT, Circle-4(1)(2), Ahmedabad

In the result, the appeal by the Revenue is partly allowed for statistical

ITA 671/AHD/2015[2010-11]Status: DisposedITAT Mumbai11 Dec 2025AY 2010-11

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri K.K. VedFor Respondent: Shri Pankaj Kumar, CIT-DR
Section 142Section 143(2)Section 143(3)Section 144CSection 144C(5)Section 45Section 47Section 48Section 50D

…ction was allowable only within the ambit of the provision of section 35ABB of the Act equal to the appropriate fraction prescribed therein. 13.5 Furthermore the reliance of the assessee on the decision of Hon'ble Delhi High Court in the case of the assessee (221 CTR 305) is not acceptable as the department has not accepted the said decision and SLP in Hon'ble supreme Court has been preferred. The assessee has also relied on the order of DRP for A.Y. 2009-10. However, the said order of DRP has also been not accepted by the Department and further appeal has been recommended. 13.6 In view of the above discussion th…

The Dy CIT, Circle-4(1)(2), Ahmedabad vs. Vodafone West Limited, Ahmedabad

In the result, the appeal by the Revenue is partly allowed for statistical

ITA 1634/AHD/2015[2010-11]Status: DisposedITAT Mumbai11 Dec 2025AY 2010-11

Bench: Shri Vikram Singh Yadavshri Sandeep Singh Karhail

For Appellant: Shri K.K. VedFor Respondent: Shri Pankaj Kumar, CIT-DR
Section 142Section 143(2)Section 143(3)Section 144CSection 144C(5)Section 45Section 47Section 48Section 50D

…ction was allowable only within the ambit of the provision of section 35ABB of the Act equal to the appropriate fraction prescribed therein. 13.5 Furthermore the reliance of the assessee on the decision of Hon'ble Delhi High Court in the case of the assessee (221 CTR 305) is not acceptable as the department has not accepted the said decision and SLP in Hon'ble Supreme Court has been preferred. The assessee has also relied on the order of DRP for A.Y. 2009-10. However, the said order of DRP has also been not accepted by the Department and further appeal has been recommended. 13.6 In view of the above discussion th…

Vodafone Idea Ltd. (Earlier Knwon As Vodafone Mobile Services Ltd.), Mumbai vs. ACIT, . Circle-26(2), New Delhi

In the result, all above said grounds are allowed for statistical purpose

ITA 8361/DEL/2019[2012-13]Status: DisposedITAT Delhi24 Oct 2025AY 2012-13

Bench: Shri S. Rifaur Rahman & Shriyogesh Kumar U.S.Vodafone Idea Ltd Vs. Acit, (Earlier Known As Vodafone Circle-26(2), Mobile Services Ltd) New Delhi 10Th Floor, Birla Centurion, Century Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharastra (Appellant) (Respondent) Pan: Aaacb2100P

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Shri S. K,. Jadav, CIT DR
Section 115JSection 143(3)Section 144C(5)Section 92C

…WPC Royalty Expenses. 13.5 The ld counsel for the assessee submitted that this issue is squarely covered in favour of the assessee by the decision of Vodafone West Limited‟ (earlier known as Fascel Limited‟) by the Hon‟ble Delhi High Court reported in (2009) 221 CTR 305 (Delhi). This issue has also been decided in favour in the assessee own case by the Hon‟ble Delhi High Court vide an Order dated 07 November 2016 for the A.Y. 2008-09. Vodafone Idea Ltd 13.6 Considering the above submission and the decisions relied upon by the ld counsel for the assessee, we respectfully following the decision of the Hon‟ble Jur…

DCIT, New Delhi vs. M/S. Vodafone Essar Digilink Ltd., New Delhi

ITA 1158/DEL/2015[2010-11]Status: DisposedITAT Mumbai14 Oct 2025AY 2010-11

Bench: SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER SHRI OMKARESHWAR CHIDARA (Accountant Member)

For Appellant: Shri Ketan Ved & Shri Ninad PatadeFor Respondent: Shri Pankaj Kumar
Section 143(1)Section 143(3)Section 144C(1)Section 144C(5)Section 92C

…e Assessee in the year under consideration. This issue under consideration i.e. whether it is capital or revenue in nature, has been decided in favour of the Assessee in its erstwhile group entity case i.e. CIT Vs. Fascel Ltd. (‘Vodafone West Limited’) (2009) 221 CTR 305 (Delhi). It was vehemently contended that the issue under consideration was different from the one decided by the Hon’ble Supreme Court in the case of Bharti Hexacom Ltd. (supra). It was submitted that the Hon’ble Supreme Court vide its Order dated 30/09/2024 (Diary No.35868 of 2024 in CA No.153 of 2021) has de- tagged the Civil appeal involving…

Vodafone Digilink Limited, New Delhi vs. Deputy Commissioner of Income-Tax, New Delhi

ITA 1073/DEL/2015[2010-11]Status: DisposedITAT Mumbai14 Oct 2025AY 2010-11
Section 143(1)Section 143(3)Section 144C(1)Section 144C(5)Section 92C

…e Assessee in the year under consideration. This issue under consideration i.e. whether it is capital or revenue in nature, has been decided in favour of the Assessee in its erstwhile group entity case i.e. CIT Vs. Fascel Ltd. (‘Vodafone West Limited’) (2009) 221 CTR 305 (Delhi). It was vehemently contended that the issue under consideration was different from the one decided by the Hon’ble Supreme Court in the case of Bharti Hexacom Ltd. (supra). It was submitted that the Hon’ble Supreme Court vide its Order dated 30/09/2024 (Diary No.35868 of 2024 in CA No.153 of 2021) has de- tagged the Civil appeal involving…

ACIT, Circle- 26(2), New Delhi vs. Vodafone Idea Ltd. (Earlier Knwon As Vodafone Mobile Services Ltd.), New Delhi

ITA 8079/DEL/2018[2007-08]Status: DisposedITAT Delhi21 Mar 2025AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 1999-2000 Vs. M/S. Vodafone West Ltd. Acit, Circle-26(2), (Thereafter Merged With New Delhi Vodafone Mobile Services Ltd.), C-48, Okhla Industrial Area, Phase-2, New Delhi Pan: Aaacf1190P (Appellant) (Respondent) With Assessment Year: 2007-08 Vs. M/S. Vodafone Idea Ltd. Acit, Circle-26(2), (Earlier Known As Vodafone New Delhi Mobile Services Ltd.), C-48, Okhla Industrial Area, Phase-2, New Delhi Pan: Aaacb2100P (Appellant) (Respondent) Assessee By Sh. Salil Kapoor, Adv. Sh. Anil Chachra, Adv. Ms. Ananya Kapoor, Adv. Department By Sh. Vijay B. Basanta, Cit(Dr) Date Of Hearing 06.03.2025 Date Of Pronouncement 21.03.2025 Order Per Satbeer Singh Godara, Jm These Revenue’S Appeals Ita No.7658/Del/2018 & 8079/Del/2018 For Assessment Years 1999-2000 & 2007-08

Section 271(1)(c)

…s capital expenditure in the course of assessment and deleted in the CIT(A)’s lower appellate order. Suffice to say, it emerges herein as well that this tribunal in Vodafone Idea Ltd. case (2017) 83 taxmann.com 7 (Del.) has followed CIT Vs. Fascel Ltd. (2009) 221 CTR 305 (Del) whilst concluding such expenses as revenue in nature only. We thus uphold the learned CIT(A)’a action deleting the impugned disallowance in very terms. 19. Lastly comes the Revenue’s fourth substantive ground that CIT(A) has erred in law and on facts in treating the assessee’s 19 | P a g e ITA No.7658/Del/2018 & 8079/Del/2018 advertiseme…

ACIT, Circle-26(2), New Delhi vs. Vodafone West Ltd., (Thereafter Merged With Vodafone Mobile Services Ltd.), New Delhi

ITA 7658/DEL/2018[1999-2000]Status: DisposedITAT Delhi21 Mar 2025AY 1999-2000

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmanassessment Year: 1999-2000 Vs. M/S. Vodafone West Ltd. Acit, Circle-26(2), (Thereafter Merged With New Delhi Vodafone Mobile Services Ltd.), C-48, Okhla Industrial Area, Phase-2, New Delhi Pan: Aaacf1190P (Appellant) (Respondent) With Assessment Year: 2007-08 Vs. M/S. Vodafone Idea Ltd. Acit, Circle-26(2), (Earlier Known As Vodafone New Delhi Mobile Services Ltd.), C-48, Okhla Industrial Area, Phase-2, New Delhi Pan: Aaacb2100P (Appellant) (Respondent) Assessee By Sh. Salil Kapoor, Adv. Sh. Anil Chachra, Adv. Ms. Ananya Kapoor, Adv. Department By Sh. Vijay B. Basanta, Cit(Dr) Date Of Hearing 06.03.2025 Date Of Pronouncement 21.03.2025 Order Per Satbeer Singh Godara, Jm These Revenue’S Appeals Ita No.7658/Del/2018 & 8079/Del/2018 For Assessment Years 1999-2000 & 2007-08

Section 271(1)(c)

…s capital expenditure in the course of assessment and deleted in the CIT(A)’s lower appellate order. Suffice to say, it emerges herein as well that this tribunal in Vodafone Idea Ltd. case (2017) 83 taxmann.com 7 (Del.) has followed CIT Vs. Fascel Ltd. (2009) 221 CTR 305 (Del) whilst concluding such expenses as revenue in nature only. We thus uphold the learned CIT(A)’a action deleting the impugned disallowance in very terms. 19. Lastly comes the Revenue’s fourth substantive ground that CIT(A) has erred in law and on facts in treating the assessee’s 19 | P a g e ITA No.7658/Del/2018 & 8079/Del/2018 advertiseme…

The Defence Accounts Co-Operative Credit Society Limited, Meerut vs. ITO Ward 1(2)(4), Meerut

In the result, the appeals of the revenue are partly allowed as indicated above

ITA 1112/DEL/2024[2019-20]Status: DisposedITAT Delhi30 Jan 2025AY 2019-20

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 143(3)Section 194HSection 260ASection 35ASection 37(1)Section 40

…1 taxman.com 754 has allowed similar SUC as revenue expenditure taking cognizance of the fact that the same has been allowed as revenue expenditure by the AO. The Ld. Counsel further stated that the Hon’ble Delhi High Court in the case of CIT Vs. Fascel Ltd. (221 CTR 305) held that SUC, Wireless Planning Commission charges are allowable as revenue charges. He also stated that similar view has been taken by the Hon’ble Delhi Bench in the case of ACIT Vs. Vodafone West Ltd. (2025) 173 taxmann.com 585 wherein Wireless Planning Charges Commission which are similar to SUC are held to be allowable as revenue expenditur…

Vartul Sharma, Ghaziabad vs. ITO Ward 3(2), Najibabad

In the result, the appeals of the revenue are partly allowed as indicated above

ITA 1111/DEL/2024[2017-18]Status: DisposedITAT Delhi30 Jan 2025AY 2017-18

Bench: Shri C.N. Prasad & Shri M. Balaganesh

Section 143(3)Section 194HSection 260ASection 35ASection 37(1)Section 40

…1 taxman.com 754 has allowed similar SUC as revenue expenditure taking cognizance of the fact that the same has been allowed as revenue expenditure by the AO. The Ld. Counsel further stated that the Hon’ble Delhi High Court in the case of CIT Vs. Fascel Ltd. (221 CTR 305) held that SUC, Wireless Planning Commission charges are allowable as revenue charges. He also stated that similar view has been taken by the Hon’ble Delhi Bench in the case of ACIT Vs. Vodafone West Ltd. (2025) 173 taxmann.com 585 wherein Wireless Planning Charges Commission which are similar to SUC are held to be allowable as revenue expenditur…

The Asstt. Commissioner of Income Tax, Circle-2(1) (1), Ahmedabad vs. M/S. Intas Pharmaceuticals Pvt. Ltd., Ahmedabad

Accordingly the claim of expenditure is allowed as revenue

ITA 1646/AHD/2017[2011-12]Status: DisposedITAT Ahmedabad31 Jan 2024AY 2011-12

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CI

…oved and the same is deleted. The ground of appeal is accordingly allowed.” 72. The Department is in appeal before us against the aforesaid relief granted by Ld. CIT(A) on this issue. Before us, the Ld. D.R. placed reliance in the case of CIT vs. Fascel Ltd. 221 CTR 305 (Delhi High Court), wherein the Delhi High Court held that expenditure by way of payment made to…

The Asstt. Commissioner of Income Tax, Circle-2(1) (1), Ahmedabad vs. M/S. Intas Pharmaceuticals Pvt. Ltd., Ahmedabad

Accordingly the claim of expenditure is allowed as revenue

ITA 1645/AHD/2017[2010-11]Status: DisposedITAT Ahmedabad31 Jan 2024AY 2010-11

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CI

…oved and the same is deleted. The ground of appeal is accordingly allowed.” 72. The Department is in appeal before us against the aforesaid relief granted by Ld. CIT(A) on this issue. Before us, the Ld. D.R. placed reliance in the case of CIT vs. Fascel Ltd. 221 CTR 305 (Delhi High Court), wherein the Delhi High Court held that expenditure by way of payment made to…

The Assistant Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad vs. Intas Pharmaceuticals Pvt. Ltd., Ahmedabad

Accordingly the claim of expenditure is allowed as revenue

ITA 1644/AHD/2017[2009-10]Status: DisposedITAT Ahmedabad31 Jan 2024AY 2009-10

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CI

…oved and the same is deleted. The ground of appeal is accordingly allowed.” 72. The Department is in appeal before us against the aforesaid relief granted by Ld. CIT(A) on this issue. Before us, the Ld. D.R. placed reliance in the case of CIT vs. Fascel Ltd. 221 CTR 305 (Delhi High Court), wherein the Delhi High Court held that expenditure by way of payment made to…

Intas Pharmaceuticals Ltd., Ahmedabad vs. The Assistant Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

Accordingly the claim of expenditure is allowed as revenue

ITA 1336/AHD/2017[2011-12]Status: DisposedITAT Ahmedabad31 Jan 2024AY 2011-12

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CI

…oved and the same is deleted. The ground of appeal is accordingly allowed.” 72. The Department is in appeal before us against the aforesaid relief granted by Ld. CIT(A) on this issue. Before us, the Ld. D.R. placed reliance in the case of CIT vs. Fascel Ltd. 221 CTR 305 (Delhi High Court), wherein the Delhi High Court held that expenditure by way of payment made to…

Intas Pharmaceuticals Ltd., Ahmedabad vs. The Assistant Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

Accordingly the claim of expenditure is allowed as revenue

ITA 1335/AHD/2017[2010-11]Status: DisposedITAT Ahmedabad31 Jan 2024AY 2010-11

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CI

…oved and the same is deleted. The ground of appeal is accordingly allowed.” 72. The Department is in appeal before us against the aforesaid relief granted by Ld. CIT(A) on this issue. Before us, the Ld. D.R. placed reliance in the case of CIT vs. Fascel Ltd. 221 CTR 305 (Delhi High Court), wherein the Delhi High Court held that expenditure by way of payment made to…

Intas Pharmaceuticals Ltd., Ahmedabad vs. The Assistant Commissioner of Income Tax, Circle-2(1)(1), Ahmedabad

Accordingly the claim of expenditure is allowed as revenue

ITA 1334/AHD/2017[2009-10]Status: DisposedITAT Ahmedabad31 Jan 2024AY 2009-10

Bench: Smt. Annapurna Gupta& Shri Siddhartha Nautiyal

For Appellant: Shri S. N. Soparkar, Sr. AdvocateFor Respondent: Dr. Darsi Suman Ratnam, CI

…oved and the same is deleted. The ground of appeal is accordingly allowed.” 72. The Department is in appeal before us against the aforesaid relief granted by Ld. CIT(A) on this issue. Before us, the Ld. D.R. placed reliance in the case of CIT vs. Fascel Ltd. 221 CTR 305 (Delhi High Court), wherein the Delhi High Court held that expenditure by way of payment made to…

DCIT, New Delhi vs. M/S. Vodafone Mobile Services Ltd., New Delhi

In the result, all the seven appeals of the Revenue are dismissed

ITA 4723/DEL/2013[2001-02]Status: DisposedITAT Delhi09 Jun 2017AY 2001-02

Bench: Sh. O.P. Kant & Sh. Kuldip Singhsl. No.

Section 143(3)

…n the business without making these payments on quarterly basis and, therefore, by no stretch of reasoning this could be held as capital in nature. The issue is no more res integra in view of the decision of Hon’ble Delhi High Court in the case of Fascel Ltd. 221 CTR 305 (supra), wherein it has been held as under: WPC-royalty expense cannot be said to be in the nature of a capital expenditure since no enduring benefit accrues to the Appellant on this account. This payment is in the form of a recurring charge incurred by the Appellant on a quarterly basis towards usage of spectrum allocated to the Appellant for pr…

CIT v. Fascel Ltd. (221 CTR 305) — Cited in 21 Judgments | BharatTax