DCIT 4(2), MUMBAI V. ROSY BLUE SECURITIES LTD, MUMBAI

ITA 3144/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7535 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2010
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 11-02-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 13-05-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Capital asset; Depreciation
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D MUMBAI BEFORE SHRI A.L.GEHLOT, AM & SMT. P.MADHAVI DEVI, JM I.T.A.NO.3144/MUM/2009 - A.Y 2006-07 DY. COMMISSIONER OF I.T. 4(2) MUMBAI M/S ROSY BLUE SECURITIES LTD., 154 C MITTAL COURT, NARIMAN POINT, MUMBAI 400 021 PAN NO.AAACR 4082 Q (APPELLANT) (RESPONDENT) REVENUE BY : SHRI MOHD. USMAN. ASSESSEE BY : SHRI NITESH JOSHI. O R D E R PER P.MADHAVI DEVI, JM: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST CIT (A)S ORDER DATED 4/02/2009. 2. THE FIRST GROUND OF APPEAL IS AGAINST THE ORDER OF THE CIT[A] IN GRANTING DEPRECIATION ON THE BSE MEMBERSHIP CARD HO LDING IT TO BE A CAPITAL ASSET. 3. AT THE TIME OF HEARING, BOTH THE PARTIES AGREED THAT THIS ISSUE IS COVERED IN FAVOUR OF THE REVENUE BY THE DECISION OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF TECHNO SHARES AND STOCK BROKERS LTD. [225 CTR 337]. THIS GROUND IS ACCORDINGLY REJE CTED. 4. AS REGARDS GROUND NO.2 AGAINST THE ORDER OF THE CIT[A] IN DELETING THE ADDITION MADE ON ACCOUNT OF PENALTY OF RS.1,46,790/- PAID FOR VIOLATION OF BYLAWS OF THE STOCK EXCHANGE. THE LD. DR RELIED UPON THE ORDER OF THE AO, WHILE THE LD. COUNSEL FOR THE ASSESSEE PLACED RELIANCE UPON THE ORDER OF THE A BENCH OF THE TRI BUNAL IN THE CASE OF 2 MASTER CAPITAL SERVICES LTD. VS. DY. CIT REPORTED I N 108 TTJ (CHD) 389, WHEREIN IT HAS BEEN HELD THAT THE FINES AND PENALTI ES ON ACCOUNT OF VIOLATION OF NSE REGULATIONS ARE PAYMENTS MADE IN R EGULAR COURSE OF BUSINESS AND NOT FOR INFRACTION OF LAW AND HENCE AL LOWABLE. RESPECTFULLY FOLLOWING THE SAID DECISION OF THE CO-ORDINATE BENC H, THIS GROUND OF APPEAL IS REJECTED. 5. AS REGARDS GROUND NO.3 IS AGAINST THE ORDER OF T HE CIT[A] IN IGNORING THE FACT THAT THE CARD WAS CONVERTED TO SH ARE DURING THE YEAR AND SEC.50 IS NOT APPLICABLE ON THIS TRANSACTION, W E FIND THAT IT IS CONSEQUENTIAL TO GROUND NO.1 AND IS ONLY ACADEMIC A ND, THEREFORE, NEEDS NO ADJUDICATION. ACCORDINGLY THIS GROUND OF A PPEAL IS REJECTED. 6. IN THE RESULT, REVENUES APPEAL IS PARTLY ALLOWE D. ORDER PRONOUNCED ON THIS 22 ND DAY OF FEBRUARY, 2010. SD/- SD/- (A.L.GEHLOT) (P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI: 22 ND FEBRUARY, 2010. P/-* COPY TO- 1) APPELLANT 2) RESPONDENT 3) CITA MUMBAI. 4) CIT CITY MUMBAI 5) DR BENCH MUMBAI TRUE COPY BY ORDER DY /ASST.REGISTRAR,ITAT MUMBAI. 3