M/s Steel City Securities Ltd., Visakhapatnam v. The ACIT, Range-4, Visakhapatnam

MA 217/VIZ/2010 | 2005-2006
Pronouncement Date: 04-01-2011 | Result: Allowed

Appeal Details

RSA Number 21725324 RSA 2010
Assessee PAN AAECS0970L
Bench Visakhapatnam
Appeal Number MA 217/VIZ/2010
Duration Of Justice 1 month(s) 2 day(s)
Appellant M/s Steel City Securities Ltd., Visakhapatnam
Respondent The ACIT, Range-4, Visakhapatnam
Appeal Type Miscellaneous Application
Pronouncement Date 04-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 04-01-2011
Assessment Year 2005-2006
Appeal Filed On 02-12-2010
Judgment Text
PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER M.A. NO. 217/VIZAG/2010 (ARISING OUT OF ITA NO. 378/VIZAG/2010 ) ASSESSMENT YEAR: 2005-06 M/S STEEL CITY SECURITIES LTD. VISAKHAPATNAM VS. ADDITIONAL COMMISSIONER OF INCOME TAX RANGE-4 VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO. AAECS 0970 L APPELLANT BY: SHRI G.V.N. HARI CA RESPONDENT BY: SHRI T.L. PETER DR ORDER PER SHRI B.R. BASKARAN ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS PETITION SEEKING RECTI FICATION OF ORDER DATED 27-8-2010 PASSED IN ITS HAND FOR THE ASSESSMENT YEA R 2005-06 IN THE APPEAL CITED ABOVE WITH THE PLEA THAT THE ISSUE OF DEPRECI ATION ON MEMBERSHIP CARD OF STOCK EXCHANGE HAS SINCE BEEN SETTLED BY HON'BLE SUPREME COURT IN THE CASE OF TECHNO SHARES & STOCKS LTD. & OTHERS VS. C IT (2010) 327 ITR 323) AND THE SAME HAS TO BE FOLLOWED BY THE BENCH IN THE INSTANT CASE ALSO. 2. DURING THE COURSE OF HEARING OF THE PETITION TH E LEARNED AUTHORISED REPRESENTATIVE PLACED A COPY OF THE ORDER OF THE AP EX COURT CITED ABOVE AND REITERATED THE CONTENTIONS MADE IN THE PETITION. T HE LEARNED DEPARTMENTAL REPRESENTATIVE DID NOT DISPUTE THE FACTUAL ASPECT O F THE MATTER. WE HAVE GONE THROUGH THE ORDER OF THE HON'BLE APEX COURT AN D NOTICE THAT THE HON'BLE APEX COURT HAS REVERSED THE ORDER OF THE HON'BLE BO MBAY HIGH COURT IN THE PAGE 2 OF 3 CASE OF TECHNO SHARES AND STOCKS LTD. (323 ITR 69) AND HAS HELD THAT DEPRECIATION IS ALLOWABLE ON THE MEMBERSHIP CARD OF A STOCK EXCHANGE. WE NOTICE THAT THE BENCH BY FOLLOWING THE DECISION OF HON'BLE BOMBAY HIGH COURT CITED ABOVE HAS HELD THAT DEPRECIATION IS NO T ALLOWABLE ON THE MEMBERSHIP CARD OF A STOCK EXCHANGE. IN VIEW OF TH E DECISION OF HON'BLE SUPREME COURT CITED ABOVE A MISTAKE AS CREPT IN TH E ORDER OF THE TRIBUNAL WHICH NEEDS TO BE RECTIFIED. ACCORDINGLY WE SUBST ITUTE THE FOLLOWING PARAGRAPHS IN THE PLACE OF PARAGRAPHS NO.4 & 5 OF O RDER DATED 27-8-2010 IN THE HANDS OF THE ASSESSEE IN ITA NO.378/VIZAG/2010. 4. THE NEXT ISSUE RELATES TO THE ALLOWABILITY OF D EPRECIATION ON THE BSE MEMBERSHIP CARD. THE CLAIM OF DEPRECIATION ON THE BSE MEMBERSHIP CARD WAS DISALLOWED BY THE ASSESSING OFF ICER. IN THE APPEAL PREFERRED BY THE ASSESSEE LEARNED CIT (A) A LLOWED THE CLAIM OF DEPRECIATION BY PLACING RELIANCE ON THE DE CISION OF HON'BLE I.T.A.T. COCHIN IN THE CASE OF PENINSULAR CA PITAL MARKET LTD (ITA NO.190(COCH)/2005 AND 245(COCH)/2006. NOW THE REVENUE IS CONTESTING THE SAID DECISION BY PLACING RELIANCE ON THE DECISION OF HON'BLE BOMBAY HIGH COURT IN THE CASE O F CIT VS. TECHNO SHARES AND STOCKS LTD (323 ITR 69; 225 CTR 3 37). 5. HOWEVER IT WAS BROUGHT TO OUR NOTICE THAT THE D ECISION OF THE BOMBAY HIGH COURT IN THE ABOVE CITED CASE HAS SINCE BEEN REVERSED BY THE HON'BLE SUPREME COURT IN THE CASE O F TECHNO SHARES & STOCKS LTD. & OTHERS VS. CIT REPORTED IN 2010 (327 ITR 323) WHEREIN IT HAS BEEN HELD THAT THE RIGHT OF ME MBERSHIP IN A STOCK EXCHANGE IS A LICENCE OR AKIN TO LICENCE WHIC H IS ONE OF THE ITEMS FALLING IN SEC.32(1)(II) AND HENCE DEPRECIATI ON IS ALLOWABLE ON THE COST OF THE MEMBERSHIP CARD. THUS WE NOTICE THAT THE IMPUGNED ISSUE IS SQUARELY COVERED BY THE DECISION OF THE HON'BLE APEX COURT IN THE CASE CITED ABOVE AND THE DECISION OF PAGE 3 OF 3 LEARNED CIT(A) IS IN TUNE WITH THE ORDER OF THE HON 'BLE APEX COURT. ACCORDINGLY WE UPHOLD THE ORDER OF THE LEA RNED CIT (A) ON THIS ISSUE. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DI SMISSED. ACCORDINGLY THE MISCELLANEOUS APPLICATION OF THE A SSESSEE IS DISPOSED OF. 3. IN THE RESULT THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED. PRONOUNCED ACCORDINGLY ON 4 TH JANUARY 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 04-01-2011. COPY TO 1 M/S STEEL CITY SECURITIES LTD. 49-52-5/4 SRI KAN YA TOWERS SANTHIPURAM VISAKHAPATNAM 2 THE ADDL. CIT RANGE-4 VISAKHAPATNAM 3 THE CIT-2 VISAKHAPATNAM 4 THE CIT(A) VISAKHAPATNAM 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM