Itxa/398/2010 Of The Commissioner Of Income Tax-4, Mumbai v. Sino Securities Pvt. Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.4166 OF 2008ANDINCOME TAX APPEAL (L) NO.4167 OF 2008 The Commissioner of Income Tax – 4, MumbaiV/s.Sino Securities Private Limited ...Appellant ...Respondent. Mr.P.S. Sahadevan i/by Mr.Vimal Gupta for the appellant.None for the respondent. CORAM : V.C. DAGA & J.P. DEVADHAR, JJ. DATE : 18TH SEPTEMBER 2009 P.C. : 1.In spite of service, none appearing on behalf of the respondents. Office objections, if any are over-ruled. Registry is directed to register both the appeals. 2.The appeals were admitted on 9-7-2009 on the following substantial question of law. a)Whether in the facts and circumstances of the case and in law, the Tribunal was correct in holding that the depreciation u/s.32 of the I.T. Act is allowable on the membership card of the Stock Exchange even though the membership card of the stock exchange is not capable of diminishing in value due to its use, wear and tear and obsolescence and further the membership card of the stock exchange is not owned by the Assessee Company but only a personal privilege given by the stock exchange to its members ?Tribunal was correct in holding that the depreciation u/s.32 of the I.T. Act is allowable on the membership card of the Stock Exchange even though the membership card of the stock exchange is not capable of diminishing in value due to its use, wear and tear and obsolescence and further the membership card of the stock exchange is not owned by the Assessee Company but only a personal privilege given by the stock exchange to its members ? b)Whether in the facts and circumstances of the case and in law, the Tribunal failed to consider that the basic ingredients of ownership are not present in the BSE Membership Card and therefore the assessee cannot claim to be its owner for the purpose of claiming depreciation on the same ? 3.The above questions of law are squarely covered by the Division Bench Judgment of this Court in group of mattes, lead appeal being Income Tax Appeal (L)–No.971 of 2006 (Commissioner of Income Tax 4 V/s. M/s.Techno Shares & StocksLimited) decided on 11th September 2009. For the reasons recorded therein, both the questions are answered in favour of the revenue and against the assessee. 4.The appeals are accordingly allowed with no order as to costs. (J.P. Devadhar, J.)(V.C. Daga, J.)