M/S. K. DAMANI SECURITIES PVT. LTD., MUMBAI V. DCIT 4(3), MUMBAI

ITA 1435/MUM/2011

• Counselvise Citation: 143519914 RSA 2011
• Duration Of Justice: 3 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-04-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: I
• Next Hearing Date: 07-04-2014
• Assessment Year: 2006-2007
• Appeal Filed On: 18-02-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D K SINHA
• Keywords: Depreciation
• Section: 32

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE S/SHRI I.P. BANSAL, (JM) AND RAJENDRA (AM) . . , , ./I.T.A. NO.1435/MUM/2011 ( / ASSESSMENT YEAR : 2006-07) M/S K.DAMANI SECURITIES PVT LTD. 5, SURYA MAHAL, 1 ST FLOOR, BURJORJI BHARUCHA MARG, FORT, MUMBAI--400023. / VS. ASSTT. COMMISSIONER OF INCOME TAX 4(3), AAYAKAR BHAVAN, M K ROAD, MUMBAI-400020 ( $ / APPELLANT) .. ( %&$ / RESPONDENT) ./ ./PAN/GIR NO. : AABCK6800 $ / APPELLANT BY : NONE %&$ ) /RESPONDENT BY : SHRI D.K.SINHA ) , / DATE OF HEARING : 7.4.2014 ) , /DATE OF PRONOUNCEMENT : 7.4.2014 / O R D E R PER I.P.BANSAL, JM: THIS APPEAL IS FILED BY THE ASSESSEE. IT IS DIREC TED AGAINST THE ORDER PASSED BY LD. CIT(A) DATED 8.12.2010 FOR ASSESSMENT YEAR 200 6-07. 2. GROUND OF APPEAL TAKEN BY ASSESSEE READS AS UNDE R : 1. THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION O F LD. DCIT OF DISALLOWING DEPRECIATION ON MEMBERSHIP CARD OF THE STOCK EXCH ANGE AND FURTHER ERRED IN NOT HOLDING THE SAME AS AN INTANGIBLE ASSETS WITHIN THE MEANING OF SECTION 32 OF THE INCOME TAX ACT, 1961 3. AT THE OUTSET, IT MAY BE MENTIONED HERE THAT TH E APPEAL FILED BY ASSESSEE IS A DEFECTIVE APPEAL ON FOLLOWING REASONS : (I) FORM NO.36 AND ITS GROUNDS OF APPEAL NOT SIGN ED BY MANAGING DIRECTOR; (II) ONE CERTIFIED COPY OF CIT(A) ORDER NOT FILED NOTICE TO REMOVE THESE DEFECTS WAS GIVEN TO THE ASS ESSEE VIDE LETTER DATED 11.10.2013. HOWEVER, THE AFOREMENTIONED DEFECTS H AVE NOT BEEN REMOVED. HOWEVER, I.T.A. NO. 1435/MUM/2011 2 APPEAL INITIALLY WAS FIXED FOR HEARING ON 6.2.2014 WHEN ASSESSEE DID NOT APPEAR DESPITE THE SERVICE OF NOTICE. TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE ONE MORE NOTICE WAS ISSUED FOR 7.4.2014 THROUGH RPAD, WHICH IS DULY SERVED ON THE ASSESSEE AS PER ACKNOWLEDGEMENT ON RECORD. HOWEVER, ON 7.4.2014, N ONE HAS APPEARED ON BEHALF OF THE ASSESSEE. IT IS UNDER THESE CIRCUMSTANCES, THE APPEAL FILED BY ASSESSEE WAS HEARD. IT WAS SUBMITTED BY LD. DR THAT THIS ISSUE IS COVER ED IN FAVOUR OF REVENUE BY THE DECISION OF ITAT IN THE CASE OF SINO SECURITIES ( P) LTD V/S ITO (2012) 134 ITD 321 (MUM) VIDE WHICH IT HAS BEEN HELD THAT AFTER CORP ORATIZATION AND DEMUTUALIZATION THE SHARES OF BOMBAY STOCK EXCHANGE LTD WOULD NOT BE ELIGIBLE FOR DEPRECIATION. IT WAS SUBMITTED THAT FOR HOLDING SO, THE TRIBUNAL HAS CONSIDERED THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF TECHNO SHARE S AND STOCK LTD V/S CIT(2010) 193 TAXMAN 248(SC) UPON WHICH THE RELIANCE WAS PLACED B Y ASSESSEE BEFORE THE AO AND LD. CIT(A). THUS, IT WAS PLEADED BY LD.DR THAT ON MERI TS ALSO THE APPEAL FILED BY THE ASSESSEE IS LIABLE TO BE DISMISSED. 4. WE HAVE HEARD THE LD. DR AND HIS CONTENTIONS HAV E CAREFULLY BEEN CONSIDERED. THE APPEAL FILED BY ASSESSEE IS LIABLE TO BE DISMIS SED ON ACCOUNT OF NON-REPRESENTATION AS DESPITE TWO OPPORTUNITIES FOR WHICH NOTICES H AVE DULY BEEN SERVED UPON THE ASSESSEE, THE ASSESSEE DID NOT APPEAR; IT IS ALSO LIABLE TO BE DISMISSED ON ACCOUNT OF NON-REMOVAL OF DEFECTS DESPITE NOTICE IN THIS REGAR D HAVING BEEN SERVED UPON THE ASSESSEE AND ALSO ON MERITS BY FOLLOWING THE AFOREM ENTIONED DECISION OF ITAT IN THE CASE OF SINO SECURITIES (P) LTD (SUPRA), WHEREIN AF TER DISCUSSING THE ISSUE AT LENGTH, IT HAS BEEN HELD THAT LD. CIT(A) WAS RIGHT IN REJECTIN G THE CLAIM OF ASSESSEE REGARDING GRANT OF DEPRECIATION ON MEMBERSHIP CARD. 5. IN VIEW OF ABOVE DISCUSSION, WE FIND NO MERIT I N THE APPEAL FILED BY ASSESSEE AND THE SAME IS DISMISSED FOR THE REASONS DISCUSSE D ABOVE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 7TH APRIL, 2014. 0 1 7TH APRIL, 2014 ) SD/- SD/- ( / RAJENDRA) ( . . / I.P. BANSAL ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI: I.T.A. NO. 1435/MUM/2011 3 . . ./ SRL , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. $ / THE APPELLANT 2. %&$ / THE RESPONDENT. 3. 6 ( ) / THE CIT(A)- CONCERNED 4. 6 / CIT CONCERNED 5. 7 %9 , , 9 , / DR, ITAT, MUMBAI CONCERNED 6. / GUARD FILE. / BY ORDER, TRUE COPY (ASSTT. REGISTRAR) , 9 , /ITAT, MUMBAI