Supreme Court of India

C.I.T., Delhi v. Bharti Hexacom Ltd.

Neutral citation
Reported as [2023] 13 S.C.R. 371
Bench B.V. Nagarathna and Ujjal Bhuyan JJ.
Decided 16 October 2023

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

We hold that the payment of entry fee as well as the variable annual licence fee paid by the respondents- assessees to the DoT under the Policy of 1999 are capital in nature and may be amortised in accordance with Section 35ABB of the Act.

Judgment, page 101

From the headnote

Issues for consideration: Whether the variable annual licence fee paid by the respondent s- assessees to the Department of Telecommunications (Do T) under the New Telecom Policy of 1999 is revenue expenditure in nature and is to be allowed deduction under Section 37 of the Income Tax Act, 1961, or, the same is capital in nature and is accordingly required to be amortised under Section 35ABB of the Act; and Whether the High Court of Delhi was right in apportioning the licence fee as partly revenue and partly capital by dividing the licence fee into two periods, that is, before and after 31st

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