Held that queries raised by the AO by virtue of the numerous notices issued under section 142(1) of the Act and replies filed thereto by the assessee shows that discreet enquiry has been made by the AO in order to determine the issue as to the allowability of depreciation on “spectrum fee”. Post which the AO has allowed the depreciation @ 25%, by treating the same as ‘intangible asset’ under section 32 of the Act. As such it is neither a case of non-application of mind on the part of the AO nor a case of inadequate enquiry. Hence, invoking revisionary jurisdiction by the Ld. PCIT under section 263 of the Act is not sustainable. On merit also the expenditure towards 3G Spectrum is not an expenditure for acquiring any right to operate telecommunications services. Even if 3G Spectrum was not applied or allotted, assessee could have still continued providing telecommunication services under the existing license. 3G Spectrum fees are merely for right to use a particular frequency/spectrum while providing telecommunication services. In view of the above, the provisions of section 35ABB of the act are not applicable to such payment. The assessee is thus entitled for claim of depreciation on merits. (AY.2015-16)