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Licence fee and Interest on it after 31st July 1999 would be treated as Revenue Expenditure
Case Law Details
- Case Name
- CIT Vs Microwave Communications Ltd. (Delhi High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
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Brief of the case
The Hon’ble High Court, in the present case held that the licence fee payable after 31st 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
The revenue urges that the interest on payment qua the license fee, could not be amortised...
