Allowability of depreciation on stock exchange membership card

J  U  D  G  M  E  N  T

(PER J.P. DEVADHAR, J.)

1. The only question raised in all these appeals is, whether depreciation under section 32 of the Income Tax Act, 1961 is allowable on the stock exchange membership card acquired by an assessee on or after 1/4/1998 ?

2. The ITAT has held that the Bombay Stock Exchange Membership Card (hereinafter referred to as the ‘BSE card’) acquired by an assessee on or after 1/4/1998, either by nomination or directly through the Stock Exchange is an intangible asset covered under Section 32 of the Income Tax Act, 1961 (`Act’ for short) and therefore, depreciation is allowable on the BSE Card. These appeals are filed by the revenue to challenge the aforesaid orders passed by the ITAT.

3. Since the question of law set out hereinabove is common in all these appeals, by consent, all these appeals are heard finally on the aforesaid substantial question of law and disposed of by this common judgment.

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