THE DCIT-4(2), MUMBAI v. M/S. STANFORD SECURITIES PVT.LTD., MUMBAI

ITA 2782/MUM/2009 | 2005-2006
Pronouncement Date: 26-02-2010 | Result: Allowed

Appeal Details

RSA Number 278219914 RSA 2009
Assessee PAN AAECS8578C
Bench Mumbai
Appeal Number ITA 2782/MUM/2009
Duration Of Justice 9 month(s) 25 day(s)
Appellant THE DCIT-4(2), MUMBAI
Respondent M/S. STANFORD SECURITIES PVT.LTD., MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 26-02-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted E
Tribunal Order Date 26-02-2010
Assessment Year 2005-2006
Appeal Filed On 01-05-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES E MUMBAI BEFORE SHRI P.M. JAGTAP (A.M.) AND SHRI N.V. VASUDE VAN (J.M.) ITA NO.2782/MUM/2009 ASSESSMENT YEAR : 2005-2006 DCIT- 4(2) ROOM NO.642 6 TH FLR. AAYAKAR BHAVAN M.K. RD. MUMBAI 400 020. VS. STANFORD SECURITIES PVT. LTD. C/O. DEVJI HIRJI INVESTMENT CO. HIND RAJASTAN CHAMBERS 3 RD FLR. 6 OAK LANE FORT MUMBAI 400 023. PAN : AAECS8578C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M. KHARE RESPONDENT BY : SHRI P P SAGAR O R D E R PER P.M. JAGTAP A.M. THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF THE LEARNED CIT (A) IV MUMBAI DATED 05.02.1009 WHERE BY HE ALLOWED CLAIM OF THE ASSESSEE FOR DEPRECIATION ON MEMBERSHIP CARD OF BOMBAY STOCK EXCHANGE. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. THE LEARNED COUNSEL F OR THE ASSESSEE HAS FRANKLY AND FAIRLY CONCEALED THAT THE ISSUE INVOLVE D IN THIS APPEAL OF THE REVENUE IS SQUARELY COVERED AGAINST THE ASSESSEE AN D IN FAVOUR OF THE REVENUE BY THE DECISION OF HONBLE BOMBAY HIGH COUR T IN THE CASE OF CIT (A) VS. TECHNO SHARE & STOCKS LTD. & ORS.(225 CTR 337). IN THE SAID DECISION HONBLE BOMBAY HIGH COURT HAS HELD THAT EXPRESSION LICENSES USED IN SECTION 32(1)(II) HAS TO BE CONSTRUED RESTRICTIVELY SO AS TO APPLY TO THE LICENCES RELATING TO ACQUISITION/USE OF INTELLECTUA L PROPERTY RIGHTS AND NOT ALL LICENCES. IT IS ALSO HELD THAT WHAT SECTION 32(1 )(II) CONTEMPLATES IS THE BUSINESS OR COMMERCIAL RIGHTS RELATING TO INTELLECT UAL PROPERTIES AND NOT ALL ITA NO.2782/MUM/2009 A.Y.: 2005-2006 2 CATEGORIES OF THE BUSINESS OR COMMERCIAL RIGHTS. IT IS HELD THAT DEPRECIATION ON BOMBAY STOCK EXCHANGE MEMBERSHIP CARD THUS IS NO T ALLOWABLE AS IT DOES NOT FORM PART OF ANY OF THE CATEGORIES SPECIFI ED IN SECTION 32(1)(II). RESPECTFULLY FOLLOWING THE SAID DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF TECHNO SHARE & STOCKS LTD. & ORS.(SU PRA) WE SET ASIDE THE IMPUGNED ORDER OF THE LEARNED CIT (A) ALLOWING THE CLAIM OF THE ASSESSEE FOR DEPRECIATION ON BOMBAY STOCK EXCHANGE MEMBERSHIP CA RD AND RESTORE THAT OF THE ASSESSING OFFICER ON THIS ISSUE. 3. IN THE RESULT APPEAL OF THE REVENUE IS ALLOWED. ORDER PRONOUNCED ON THIS 26 TH DAY OF FEBRUARY 2010. SD/- (N.V. VASUDEVAN) (JUDICIAL MEMBER) SD/- (P.M. JAGTAP) (ACCOUNTANT MEMBER) MUMBAI DATED 26 TH FEBRUARY 2010. JANHAVI COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. COMMISSIONER OF INCOME TAX (APPEALS)-IV MUMBAI 4. COMMISSIONER OF INCOME TAX CITY- IV MUMBAI 5. DEPARTMENTAL REPRESENTATIVE BENCH E MUMBAI //TRUE COPY// BY ORDER ASSTT. REGISTRAR ITAT MUMBAI ITA NO.2782/MUM/2009 A.Y.: 2005-2006 3 DATE INITIALS 1. DRAFT DICTATED ON 25-02-10 PS 2. DRAFT PLACED BEFORE AUTHOR 26-02-10 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER AM/JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/J M 5. APPROVED DRAFT COMES TO THE SR. PS PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER