Notification No. 89 /2016 [F. No. 370142/14/2016-TPL] / SO 3145(E) : Income-tax (24th Amendment) Rules, 2016
The document, verbatim
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART-II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
Notification
New Delhi, the 4" October, 2016
INCOME-TAX
S.O. 3INS(E).— In exercise of the powers conferred by clause
(iti) of
Explanation to section 35ABA and section 295 of the Income-tax Act, 1961 (43 of
1961), the Central Board of Direct ‘l'axes, hereby, makes the following rules further
to amend the Income-tax Rules, 1962, namely:-
(1)
These rules may be called the Income-tax (24" Amendment) Rules, 2016.
(2)
They shall come into force on the date of their publication in the Official
Gazette.
2
In the Income-tax Rules, 1962, after rule 6, the following rule shall be
inserted, namely:—
‘6A.Expenditure for obtaining right to use spectrum for telecommunication
services.— (1)
For the purpose of section 35ABA, the term “payment has
actually been made” shall mean,—
(a)
where an assessee has opted and been allowed by the Department of
Telecommunications, Government of India to make
full upfront
payment
of spectrum
fee,
the
actual
payment
of expenditure
irrespective of the previous year in which the
liability
for the
expenditure was incurred according to the method of accounting
tegularly employed by the assessee;
(b)
where an assessee has opted and been allowed by the Department of
Telecommunications,
Government
of
India
to
make
deferred
payment, the amount which would have been payable by the assessee
had he opted for full upfront payment of spectrum fee irrespective of
the previous year in which the liability for the expenditure was
incurred according to the method of accounting regularly employed
by the assessee.
(2) In case of deferred payment referred to in clause (b) of sub-rule (1), where
there is failure by the assessee to comply with any of the conditions specified
by the scheme of the Department of Telecommunications, Government of
India and Department of ‘Telecommunications terminates the allotment or
assignment of spectrum, the Assessing officer shall, in exercise of power
vested in him under sub-section (3) of section 35ABA shall re-compute the
total income of the assessee for the previous yeat in which the deduction has
been claimed and granted to him by deeming that,—
(t)
the total amount of spectrum fee paid
up to the date of termination
is the amount of “payment actually been made”;
(11)
the spectrum was in force up to the date of its termination for the
purpose of computing “relevant previous year’’.
[Notification No. #9 /2016, F.No.370142/14/2016 -TPL]
Biche
(PITAMBAR DAS)
DIRECTOR (TAX POLICY AND LEGISLATION)
Note: Theprincipal rules werepublished in the Gazette ofIndia, Extraordinary, Part II, Section
3, Sub-section (ii) vide notification number S.O. 969 (E), dated the 26”March, 1962 and last
amended by the Income-tax arAmendment) Rules, 2016, vide notification number S.O. 3080
(E), dated 29/09/2016 .