Licence fee and Interest on it after 31st July 1999 would be treated as Revenue Expenditure

Brief of the case

The Hon’ble High Court, in the present case held that the licence fee payable after 31^st July 1999 should be treated as revenue expenditure. Similarly, if the interest was payable on license fee for the period post 31st July, 1999, it should be treated as revenue in nature.

Facts of the Case

The question is whether the licence fee payable by telecom service  providers to the Department of Telecommunications is to be treated as capital or revenue expenditure.

Contention of the revenue

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