Gujarat High Court
Commissioner Of Income Tax-I vs Madhur Shares & Stock Pvt. ... on 27 February, 2017
Author: M.R. Shah
Bench: M.R. Shah, B.N. Karia
O/TAXAP/1095/2008 JUDGMENT
IN THE HIGH COURT OF GUJARAT AT
AHMEDABAD
TAX APPEAL No. 1095 of 2008
With
TAX APPEAL No. 1096 of 2008
FOR APPROVAL AND SIGNATURE :
HONOURABLE Mr. JUSTICE M.R. SHAH Sd/=
and
HONOURABLE Mr. JUSTICE B.N. KARIA Sd/=
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1 Whether Reporters of Local Papers may be allowed to see No
the judgment ?
2 To be referred to the Reporter or not ? No
3 Whether their Lordships wish to see the fair copy of the No
judgment ?
4 Whether this case involves a substantial question of law No
as to the interpretation of the Constitution of India or any
order made thereunder ?
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COMMISSIONER OF INCOME TAX-I,....Appellant(s)
Versus
MADHUR SHARES & STOCK PVT. LTD....Opponent(s)
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Appearance :
Mrs MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1
Mr MONAAL J DAVAWALA for Mrs SWATI SOPARKAR, ADVOCATE for
the Opponent(s) No. 1
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CORAM: HONOURABLE Mr. JUSTICE M.R.
SHAH
and
HONOURABLE Mr. JUSTICE B.N.
KARIA
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O/TAXAP/1095/2008 JUDGMENT
27th February 2017
ORAL JUDGMENT (PER : HONOURABLE Mr. JUSTICE M.R. SHAH)
As common question of law and facts arise in both these Tax Appeals, and as such arising out of the impugned common judgment and order dated 10th August 2007 passed by the Income Tax Appellate Tribunal, Ahmedabad "D" Bench [hereinafter referred to as, "the Tribunal"] with respect to the same assessee, but with respect to different assessment years, both these Appeals are heard and disposed of together by this common judgment and order.
2. Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the learned Tribunal in I.T.A Nos. 192 & 193/Ahd/2007 for Assessment Years : 1999-2000 & 2000-2001 by which the learned Tribunal has dismissed the said Appeals preferred by the Revenue and has confirmed the order passed by the learned Commissioner of Income-tax [Appeals] directing to delete the addition made on account of disallowance of depreciation in respect of Page 2 of 6 HC-NIC Page 2 of 6 Created On Sun Aug 13 23:53:50 IST 2017 O/TAXAP/1095/2008 JUDGMENT the Stock Exchange Card of Ahmedabad Stock Exchange, the Revenue has preferred the present Tax Appeals with the following substantial question of law :
"Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT [A] deleting addition made on account of disallowance of depreciation in respect of Stock Exchange card of Ahmedabad Stock Exchange ?"
3. During the years under consideration, the assessee claimed depreciation in respect of the Stock Exchange card of Ahmedabad Stock Exchange. The Assessing Officer denied the same on the ground that the relevant conditions provided under Section 32 [1](ii) of the Income-tax Act, 1961 has not been complied with. On further appeal, the learned CIT [A] has allowed the said depreciation claimed by the assessee which has been confirmed by the learned Tribunal.
4. We have heard Ms. Mauna M Bhatt, learned Page 3 of 6 HC-NIC Page 3 of 6 Created On Sun Aug 13 23:53:50 IST 2017 O/TAXAP/1095/2008 JUDGMENT counsel appearing on behalf of the appellant-Revenue and Mr. M.J Davawala, learned advocate appearing for the respondent-assessee.
5. Whether the assessee is entitled to depreciation in respect of Stock Exchange card of Ahmedabad Stock Exchange is concerned, as such, the same is directly and squarely covered by a decision of Hon'ble Supreme Court in the case of Techno Shares & Stock Limited v. Commissioner of Income-Tax, reported in [2010] 327 ITR 323 (SC) as well as another decision of Apex Court in the case of Commissioner of Income-tax, Kolkata v. Smifs Securities Limited, reported in [2012] 348 ITR 302 [SC].
5.1 By the aforesaid decisions, the Hon'ble Supreme Court has observed and held that the Stock Exchange card is an asset, and therefore, the assessee is entitled to depreciation in respect of such Exchange card of Ahmedabad Stock Exchange. Therefore, whether the assessee is entitled to depreciation in respect of Stock Exchange card of Ahmedabad Stock Exchange is Page 4 of 6 HC-NIC Page 4 of 6 Created On Sun Aug 13 23:53:50 IST 2017 O/TAXAP/1095/2008 JUDGMENT concerned, the same is concluded in favour of the assessee and against the Revenue.
5.2 However, it is required to be noted that for the aforesaid, the assessee must have acquired the Stock Exchange card and or before 1st April 1998, as provided under Section 36 of the Act. There are concurrent finding of facts by both the authorities below and it is not disputed that in the present case, the assessee did acquire the Exchange card of Ahmedabad Stock Exchange on or before 1st April 1998, however, obtained registration certificate subsequently in the month of June 1998.
5.3 Under the circumstances, as rightly observed by the learned Tribunal, the assessee is entitled to depreciation in respect of such Stock Exchange card of Ahmedabad Stock Exchange.
6. We are in complete agreement with the view taken by the learned Tribunal.
7. In view of the above, we see no reason to interfere with the common judgment and order dated 10th Page 5 of 6 HC-NIC Page 5 of 6 Created On Sun Aug 13 23:53:50 IST 2017 O/TAXAP/1095/2008 JUDGMENT August 2007 passed by the learned Tribunal directing to delete the addition made on account of disallwoance of depreciation in respect of Stock Exchange card of Ahmedabad Stock Exchange.
8. In view of the above and for the reasons cited above, both these Tax Appeals fail and the same deserves to be dismissed and are accordingly dismissed. Question of law is held against the Revenue and in favour of the assessee.
Both these Tax Appeals stand disposed of accordingly.
Sd/-
{M.R Shah, J.} Sd/-
{B.N Karia, J.} Prakash Page 6 of 6 HC-NIC Page 6 of 6 Created On Sun Aug 13 23:53:50 IST 2017