DCIT 4(2), MUMBAI V. VISARIA SECURITIES P. LTD, MUMBAI

ITA 4228/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 7598 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 31-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 09-07-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: LATA PARULEKAR
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, F, MUMBAI BEFORE SHRI R V EASWAR, SENIOR VICE PRESIDENT AND SHRI B RAMAKOTAIAH, ACCOUNTANT MEMBER I T A NO: 4228/MUM/2009 (ASSESSMENT YEAR: 2006-07) DEPUTY COMMISSIONER OF INCOME TAX 4(2), MUMBAI AP PELLANT VS M/S VISARIA SECURITIES PVT. LTD., MUMBAI RESPON DENT (PAN: AAACV7721L) APPELLANT BY: MR RAJARSHI DWIVEDY RESPONDENT BY: MS LATA PARULEKAR O R D E R R V EASWAR, SENIOR VICE PRESIDENT: IN THIS APPEAL BY THE DEPARTMENT, THE ONLY ISSUE I S WHETHER THE CIT(A) WAS RIGHT IN DELETING THE DISALLOWANCE OF RS .13,56,856/- ON ACCOUNT OF DEPRECIATION ON BSE MEMBERSHIP CARD. 2. THE ASSESSEE IS A COMPANY ENGAGED IN THE BUSINES S OF SHARE BROKER. IT IS REGISTERED AT THE BOMBAY STOCK EXCHA NGE. IN THE RETURN IT CLAIMED DEPRECIATION ON THE BSE CARD UNDER SECTION 32(1)(II) OF THE INCOME TAX ACT, 1961, TREATING THE CARD AS AN INTA NGIBLE ASSET. THE CLAIM WAS DISALLOWED BY THE ASSESSING OFFICER AND O N APPEAL THE CIT(A), FOLLOWING THE ORDER OF THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2000-01, ALLOWED THE DEPREC IATION. THE REVENUE IS IN APPEAL CHALLENGING THE DECISION OF TH E CIT(A). 3. AT THE TIME OF HEARING, THE LEARNED REPRESENTATI VE FOR THE ASSESSEE FAIRLY STATED THAT THE APPEAL MUST BE DECI DED IN FAVOUR OF THE REVENUE, FOLLOWING THE JUDGMENT OF THE HONBLE BOMB AY HIGH COURT IN 2 CIT VS. TECHNO SHARES & STOCKS LTD. (2009) 184 TAXM AN 103 (BOM), WHERE IT HAS BEEN HELD THAT NO DEPRECIATION IS ALLO WABLE ON BSE MEMBERSHIP CARD. RESPECTFULLY FOLLOWING THE AFORES AID JUDGMENT, WE REVERSE THE DECISION OF THE CIT(A) ON THIS POINT AN D RESTORE THAT OF THE ASSESSING OFFICER. 4. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS A LLOWED WITH NO ORDER AS TO COSTS. ORDER PRONOUNCED ON 23 RD FEBRUARY 2010. SD/- SD/- (B RAMAKOTAIAH) (R V E ASWAR) ACCOUNTANT MEMBER SENIOR VICE PRESI DENT MUMBAI, DATED 23 RD FEBRUARY 2010 SALDANHA COPY TO: 1. M/S VISARIA SECURITIES PVT. LTD. 301-A COMMERCIAL HOUSE 140 NAGINDAS MASTER ROAD, FORT, MUMBAI 400 023 2. DCIT 4(2) 3. CIT-4 4. CIT(A)-IV 5. DR F BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI