Vinod Chandran, J v. Sd/-K.vinod Chandranjudge

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 22ND DAY OF JANUARY 2019 / 2ND MAGHA, 1940 ITA.No. 421 of 2010 AGAINST THE ORDER/JUDGMENT IN ITA 294/(COCH)2006 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 25-03-2009 APPELLANT/S:/APPELLANT/ASSESSEE: M/S GEOJIT SECURITIES LIMITED,(GEOJIT FINANCIAL SERVICES LTD.), 5TH FLOOR, FINANCE TOWERS,KALOOR,KOCHI-17. BY ADVS.SRI.E.K.NANDAKUMAR (SR.)SMT.PREETHA S.NAIRSRI.K.JOHN MATHAISRI.P.BENNY THOMASSRI.P.GOPINATH (SR.) RESPONDENT/S:/RESPONDENT/REVENUE: THE ASST. COMMISSIONER OF INCOME TAX,CIRCLE 1(2), ERNAKULAM. BY ADVS.SRI.JOSE JOSEPH, SC, FOR INCOME TAXSRI.P.K.RAVINDRANATHA MENON, SR. COUNSEL, GOI (TAXES) THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.01.2019, ALONG WITH ITA.423/2010 AND ITA.424/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 22ND DAY OF JANUARY 2019 / 2ND MAGHA, 1940 ITA.No. 423 of 2010 AGAINST THE ORDER/JUDGMENT IN ITA 296(COCH)/2006 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 25-03-2009 APPELLANT/S:/APPELLANT/ASSESSEE: M/S. GEOJIT SECURITIES LTD.(GEOJIT FINANCIAL SERVICES LTD.) 5TH FLOOR,, FINANCE TOWERS, KALOOR, KOCHI-17. BY ADVS.SRI.E.K.NANDAKUMAR (SR.)SMT.PREETHA S.NAIRSRI.K.JOHN MATHAISRI.P.BENNY THOMASSRI.P.GOPINATH (SR.) RESPONDENT/S:/RESPONDENT/REVENUE: THE ASST. COMMISSIONER OF INCOME TAX,CIRCLE 1 (2), ERNAKULAM. BY ADVS.SRI.P.K.RAVINDRANATHA MENON, SR.COUNSEL, GOI (TAXES)SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.01.2019, ALONG WITH ITA.421/2010 AND ITA.424/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: IN THE HIGH COURT OF KERALA AT ERNAKULAMPRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 22ND DAY OF JANUARY 2019 / 2ND MAGHA, 1940 ITA.No. 424 of 2010 AGAINST THE ORDER/JUDGMENT IN ITA 295(COCH)/2006 ofI.T.A.TRIBUNAL,COCHIN BENCH DATED 25.3.2009 APPELLANT/S:/APPELLANT/ASSESSEE: M/S.GEOJIT SECURITIES LIMITED,(GEOJIT FINANCIAL SERVICES LTD) 5TH FLOOR, FINANCE,TOWERS, KALOOR, KOCHI-17. BY ADVS.SRI.E.K.NANDAKUMAR (SR.)SMT.PREETHA S.NAIRSRI.K.JOHN MATHAISRI.P.BENNY THOMASSRI.P.GOPINATH (SR.) RESPONDENT/S:/RESPONDENT/REVENUE: THE ASST.COMMISSIONER OF INCOME TAX,CIRCLE 1(2), ERNAKULAM. BY ADVS.SRI.JOSE JOSEPH, SC, FOR INCOME TAXSRI.P.K.RAVINDRANATHA MENON, SR.COUNSEL, GOI (TAXES) THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.01.2019, ALONG WITH ITA.421/2010 AND ITA.423/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.VINOD CHANDRAN & ASHOK MENON, JJ. ------------------------------------------- ITA Nos.421, 423 and 424 of 2010------------------------------------------- Dated this the 22[nd] day of January, 2019 J U D G M E N T Vinod Chandran, J. The assessee is a Company incorporated, interalia, with the object of dealing in stocks andsecurities. The assessee had taken membership in theBombay Stock Exchange (BSE). The membership fees wassought to be claimed as deduction under Section 32(1)(ii) of the Income Tax Act, 1961 as depreciation. Thelower authorities consistently disallowed the claim forall the three assessment years. As of now, the findingof the lower authorities stands vitiated by the reasonof the binding declaration made by the HonourableSupreme Court in (2010) 327 ITR 323 (SC) [TechnoShares and Stocks Ltd. v. Commissioner of Income Tax].The Honourable Supreme Court had held that themembership card of the BSE is an intangible asset anddepreciation can be claimed thereon. The issue raisedin the above cases is also with respect to themembership taken in the BSE. Hence, the question of law has to be answered in favour of the assessee andagainst the Revenue. The orders of the lowerauthorities for all the assessment years would standset aside on that aspect. In view of the above, theseITAs would stand allowed leaving the parties to suffertheir respective costs. Sd/-K.VINOD CHANDRANJUDGE Sd/-ASHOK MENONJUDGE APPENDIX OF ITA 421/2010 APPELLANT'S/S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ORDER FOR THE YEAR 2001-02 UNDER SECTION 154 DATED 7/9/2005 ISSUED BY THE RESPONDENT TO THE APPELLANT. ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 23/2/2006 ISSUED TO THE APPELLANT. ANNEXURE-CTRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 25/3/2009 ISSUED TO THE APPELLANT. ANNEXURE-DTRUE COPY OF THE ORDER IN MISCELLANEOUSPETITION DATED 9/9/2009 jg [True Copy] APPENDIX OF ITA 423/2010 APPELLANT'S/S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ORDER FOR THE YEAR 2003-04 UNDER SECTION 143(3) DATED 26/8/2005 ISSUED BY THE RESPONDENT TO THE APPELLANT ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 23/2/2006 ISSUED TO THE APPELLANT. ANNEXURE-C TRUE COPY OF THE ORDER OF THE INCOME TAXAPPELLATE TRIBUNAL DATED 25/3/2009 ISSUED TO THE APPELLANT. ANNEXURE-DTRUE COY OF THE ORDER IN MISCELLANEOUS PETITION DATED 9/9/2009 jg [True Copy] APPENDIX OF ITA 424/2010 APPELLANT'S/S EXHIBITS: ANNEXURE-A TRUE COPY OF THE ORDER FOR THE YEAR 2002-03 UNDER SECTION 154 DATED 20/9/2005 ISSUED BY THE RESPONDENT TO THE APPELLANT. ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 23/2/2006 ISSUED TO THE APPELLANT. ANNEXURE-CTRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 25/3/2009 ISSUED TO THE APPELLANT. ANNEXURE-DTRUE COPY OF THE ORDER IN MISCELLANEOUSPETITION DATED 9/9/2009 jg [True Copy]