RAHEJA STOCK BROKERS P. LTD, MUMBAI v. ITO CIR 4(2)(3), MUMBAI

ITA 6159/MUM/2009 | 2006-2007
Pronouncement Date: 30-09-2010 | Result: Partly Allowed

Appeal Details

RSA Number 615919914 RSA 2009
Assessee PAN AAACR7390E
Bench Mumbai
Appeal Number ITA 6159/MUM/2009
Duration Of Justice 10 month(s) 3 day(s)
Appellant RAHEJA STOCK BROKERS P. LTD, MUMBAI
Respondent ITO CIR 4(2)(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted D
Tribunal Order Date 30-09-2010
Date Of Final Hearing 28-09-2010
Next Hearing Date 28-09-2010
Assessment Year 2006-2007
Appeal Filed On 26-11-2009
Judgment 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