Spectrum fee

Meaning of "actually paid" (sub-rule 1).

• Full upfront payment, where the assessee opted for it and the Department of Telecommunications allowed it: the actual payment of the expenditure, irrespective of the tax year in which the liability was incurred, according to the assessee's regular method of accounting.
• Deferred payment, where the assessee opted for it and it was allowed: the amount that would have been payable had the assessee opted for full upfront payment, irrespective of the tax year in which the liability was incurred, according to the regular method of accounting.

If a deferred-payment allotment is terminated (sub-rule 2). Where the assessee fails to comply with the scheme's conditions and the Department terminates the allotment or assignment of spectrum, the Assessing Officer, using the power in section 52(5), recomputes the total income for the tax year in which the deduction was claimed and granted. For that recomputation it is deemed that (a) the total spectrum fee paid up to the date of termination is the amount "actually paid", and (b) the spectrum was in force up to the date of termination for counting tax years under section 52(1) [Table: Sl. No. 3, C. D].