CIT Vs. BHARTI TELENET LTD.

JUDGEMENT

(1.) COMMON questions of law are urged by the Revenue in these four appeals. ITA 1110/2011 concerns the assessee Bharti Telenet Limited for AY 2001 -02. This is the most comprehensive appeal of the Revenue, which seeks to urge seven substantial questions for consideration of the Court. The other appeals are in respect of the assessee Bharti Infotel Limited. ITA No. 386/2012 is in respect of AY 2002 -03; ITA No. 387/2012 is in respect of AY 2003 -04 and ITA No. 193/2013 is in respect of AY 2004 -05. The questions of law urged are as follows: -

(2.) THIS Court notices that of the above, question no. 1 (disallowance of variable license fee) and question no. 6 which is in respect of disallowance of interest, for different amounts, have been urged as the only questions in the other appeals i.e., ITA Nos. 386/2012, 387/2012 and ITA 193/2013. Regarding the question no. 1 for AY 2001 -02, the amount of Rs. 1,68,25,201/ - for which expenditure was claimed, was disallowed by the AO, under Section 35ABB. The relevant discussion by the Assessing Officer is as follows: -

(3.) SO far as question no. 6, i.e., disallowance on account of interest on delayed payment to DoT (towards the license fee) , the initial addition by the AO was directed to be deleted by the ITAT. This too was considered in Bharti Hexacom (supra) . The Court while observing that the claim of licence fee payment was varied w.e.f. 31.7.1999 inasmuch as prior to that it was a fixed amount whereas subsequently it was altered to variable one - held as follows: