Case Law Details
DCIT Vs Edelweiss Financial Advisors Ltd (ITAT Ahmedabad)
Conclusion: Stock exchange membership card was not an eligible asset u/s 32 and thus, addition made by AO on account of depreciation on the intangible asset being membership card of the stock exchange was to be deleted.
Held: Assessee was engaged in the business of stockbroking. 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 assessee was not in the possession of a stock exchange card in the year under consideration. Accordingly, AO was of the view that the depreciation claimed by 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. It was held that stock exchange membership card was not an eligible asset u/s 32 as held in M/s. Tech nosh 3 res and Stocks Ltd. Vs.CIT 193 Taxman 248. Therefore, the addition made by AO on account of depreciation on the intangible asset being membership card of the stock exchange was to be deleted.
FULL TEXT OF THE ITAT JUDGEMENT
In this bunch of appeals two appeals have been filed by the Assessee and two appeals have been filed by the Revenue for A.Ys. 2010-11, 2011-12 2012-13 which are arising from the order of the CIT(A)-10, Ahmedabad orders dated 11.12.2015, in the assessment proceedings under Section 143(3) of the Income Tax Act, 1961 (in short “the Act”).
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