INCOME TAX ACT, 1961

Section 32

Depreciation - Intangible asset - Membership Cards of BSE and ASE -

Assessee, in the present case, was a limited company and engaged in the business of stock broking. The AO during the assessment proceedings found that the membership card of the stock exchange held by assessee had been demutualized/corporatized into the shares in the earlier year 2005-06. As such, the assessee was not in the possession of stock exchange card in the year under consideration. Accordingly, AO was of the view that the depreciation claimed by the assessee on the intangible asset being membership card of the stock exchange was not allowable under the provisions of section 32. Accordingly, AO disallowed the same and added to the total income of assessee. CIT(A) deleted the addition made by AO. AR contended that Tribunal in assessee's own case had allowed the depreciation [ITA No. 1718/Ahd/2011 vide Order, dated 6-11-2015 for the assessment year 2008-09]. Held: There being no change in the facts and circumstances vis-a-vis under the provisions of law, the order of the CIT(A) was confirmed in view of the order of the Tribunal in assessee's own case. Accordingly, the AO was to delete the addition made by him. Depreciation under section 32(1) is allowable to assessee who was holding stock exchange cards.

Followed:Tribunal in the assessee's own case in ITA No. 1718/Ahd/2011 for the assessment year 2008-09 vide Order dated 6-11-2015

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11 to 2012-13

INCOME TAX ACT, 1961

Section 32(1)

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