Telecom License Fee Held Capital, But Spectrum Charges Allowed as Revenue

DCIT Vs Bharti Hexacom Ltd. (ITAT Delhi) License Fee Capital, But SUC Lives On: Bharti Hexacom—ITAT Delhi Applies SC, Splits the Baby Correctly In a batch of Revenue appeals, core dispute revolved around telecom license fee, spectrum usage charges (SUC), subscriber verification penalty & discount on prepaid instruments. AO had treated variable license fee as capital expenditure u/s 35ABB, disallowed SUC, subscriber verification penalty u/s 37(1) & invoked s.40(a)(ia) r.w.s. 194H on distributor discounts. CIT(A) granted relief on all counts. ITAT Delhi partly reversed & partly uph...