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 in

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