No Enduring Benefit in Routine Telecom Expenses: ₹169 Cr Customer Acquisition Cost allowed

Tata Teleservices Limited Vs ACIT (ITAT Delhi) ITAT Delhi: ₹169 Cr Customer Acquisition Cost Allowed as Revenue Expenditure – No Enduring Benefit in Routine Telecom Business Facts in Brief Tata Teleservices Ltd. filed its return declaring a loss of ₹324.29 crore. The AO, while completing assessment u/s 143(3), disallowed Customer Acquisition Cost (CAC) of ₹169.09 crore, treating it as capital expenditure incurred for creating an enduring benefit by enlarging the customer base. The expenditure included porting charges, data entry costs, & handset subsidies paid to distributors for s...