Appeal details
Counselvise Citation
[2010] 135 COUNSELVISE.COM (IT) 4577 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
10 month(s) 3 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
30-09-2010
Appeal Filed By
Assessee
Order Result
Partly Allowed
Bench Allotted
D
Next Hearing Date
28-09-2010
Assessment Year
2006-2007
Appeal Filed On
26-11-2009
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH D MUMBAI BEFORE SHRI PRAMOD KUMAR (AM) AND SMT ASHA VIJAYARAGHAVAN (JM) ITA NO.6159/MUM/2009 (ASSESSMENT YEAR-2006-07) M/S. RAHEJA STOCK BROKERS PVT. LTD., 521, ROTUNDA STOCK EXCHANGE, FORT, MUMBAI-400 001 PAN-AAACR7390E THE ITO, CIRCLE 4(2)(3), MUMBAI (APPELLANT) VS. (RESPONDENT) APPELLANT BY: SMT. CHANDANI J. AHUJA RESPONDENT BY: SHRI JITENDRA YADAV O R D E R PER SMT. ASHA VIJAYARAGHAVAN (JM) THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD.CIT(A)-8, MUMBAI DATED 6.10.2009 FOR THE A.Y. 2 006-07. 2. THE ASSESSEE HAS RAISED THE ADDITIONAL GROUNDS O F APPEAL BEFORE US AS FOLLOWS: 1. THE LD. CIT(A)-8 HAS ERRED IN CONFORMING ADDITION O F RS. 91,00,000/- BEING THE DIFFERENCE BETWEEN ORIGIN AL COST OF ACQUISITION OF MEMBERSHIP OF BSE RS. 1,30,000/- & WDV AS PER BOOKS OF RS. 39,00,000/- ON PROTECTIVE BASIS AND DISALLOWING DEPRECIATION ON BS E CARD FOR RS. 13,00 ,000/-. 2. APPELLANT FURTHER PLEAD BEFORE YOUR HONOUR: ITA NO. 6159/M/09 2 A. TO DIRECT THE AO TO DELETE THE PROTECTIVE ADDITI ON OF RS. 91,00,000/- AND ALLOW DEPRECIATION OF RS. 13,00,000/- ON BSE CARD. 3. WE ADMIT THE ADDITION GROUNDS OF APPEAL RELYING ON THE DECISION IN THE CASE OF NATIONAL THERMAL POWER CO. LTD. VS C IT 229 ITR 383 (SC). 4. WITH RESPECT TO THE FIRST GROUND, WE FIND THAT T HE ISSUE IS COVERED BY THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF M/S. TECHNO SHARES & STOCKS LTD. CIVL APPEAL NOS. 7780- 7781 OF 2010 WHEREIN IT HAS BEEN HELD THAT THE DEPRECIATION IS ALLOWABLE ON THE COST OF THE MEMBERSHIP CARD UNDER SEC. 32(1)(II) OF THE I.T. ACT, 1961. THEREFORE, THE FIRST GROUND RAISED BY THE ASSESSE E IS ALLOWED. 5. WITH RESPECT TO GROUND NO. 2 REGARDING DEPRECIAT ION OF RS. 13,00,000/- ON BSE CARD, W E FIND THAT THE DECISION OF SPECIAL BENCH IN THE CASE OF DAGA CAPITAL MANAGEMENT PVT. LTD HAS BE EN SET ASIDE BY THE JURISDICTIONAL HIGH COURT IN THE CASE OF GODREJ & B OYCE MFG CO LTD V DCIT (2010 TIOL-564-HC-MUM-IT). IN THE CIRCUMSTANCES, WE SET ASIDE THE ORDER OF AO AND CIT(A) ON THIS ISSUE AND REMIT THE MATTER BACK TO THE FILES OF AO TO DECIDE THE ISSUE AFRESH IN LINE WITH THE RATIO OF T HE DECISION OF THE JURISDICTIONAL HIGH COURT. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON THIS 30 TH DAY OF SEPTEMBER, 2010. SD/- SD/- PRAMOD KUMAR ASHA VIJAYARAGHAVAN (ACCOUNTANT MEMBER) (JUDICI AL MEMBER) MUMBAI, DATED 30 TH SEPTEMBER, 2010. RJ ITA NO. 6159/M/09 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CENTRAL - I CONCERNED 5. THE DR D BENCH TRUE COPY BY ORDER ASST. REGISTRAR, I.T.A.T, MUMBAI
