Allowed

M/S.Geojit Securities Limited, v. the Asst.Commissioner of Income Tax

Kerala HC22 Jan 2019ITA/424/2010

Case brief

AI extract

What is this about?

The Kerala High Court allowed three Income Tax Appeals filed by M/s. Geojit Securities Limited. The Court held that lower authority orders disallowing the deduction of BSE membership fees as depreciation under Section 32(1)(ii) must be set aside in light of the Supreme Court's declaration that such membership is an intangible asset.

What did the court decide?

The orders of the lower authorities for all relevant assessment years are set aside regarding the depreciation claim; ITAs allowed with parties bearing their respective costs.

M/S.Geojit Securities Limited, Vs the Asst.Commissioner of Income… — Income Tax | Kerala HC (2019)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

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THE HONOURABLE MR. JUSTICE ASHOK MENON

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TUESDAY ,THE 22ND DAY OF JANUARY 2019 / 2ND MAGHA, 1940

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ITA.No. 421 of 2010

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AGAINST THE ORDER/JUDGMENT IN ITA 294/(COCH)2006 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 25-03-2009

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APPELLANT/S:/APPELLANT/ASSESSEE:

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M/S GEOJIT SECURITIES LIMITED, (GEOJIT FINANCIAL SERVICES LTD.), 5TH FLOOR, FINANCE TOWERS,KALOOR,KOCHI-17.

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BY ADVS. SRI.E.K.NANDAKUMAR (SR.) SMT.PREETHA S.NAIR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS SRI.P.GOPINATH (SR.)

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RESPONDENT/S:/RESPONDENT/REVENUE:

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THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1(2), ERNAKULAM.

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BY ADVS. SRI.JOSE JOSEPH, SC, FOR INCOME TAX SRI.P.K.RAVINDRANATHA MENON, SR. COUNSEL, GOI (TAXES)

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THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.01.2019, ALONG WITH ITA.423/2010 AND ITA.424/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

¶19

¶20

THE HONOURABLE MR. JUSTICE ASHOK MENON

¶21

TUESDAY ,THE 22ND DAY OF JANUARY 2019 / 2ND MAGHA, 1940

¶22

ITA.No. 423 of 2010

¶23

AGAINST THE ORDER/JUDGMENT IN ITA 296(COCH)/2006 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 25-03-2009

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APPELLANT/S:/APPELLANT/ASSESSEE:

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M/S. GEOJIT SECURITIES LTD. (GEOJIT FINANCIAL SERVICES LTD.) 5TH FLOOR,, FINANCE TOWERS, KALOOR, KOCHI-17.

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BY ADVS. SRI.E.K.NANDAKUMAR (SR.) SMT.PREETHA S.NAIR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS SRI.P.GOPINATH (SR.)

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RESPONDENT/S:/RESPONDENT/REVENUE:

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THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1 (2), ERNAKULAM.

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BY ADVS. SRI.P.K.RAVINDRANATHA MENON, SR.COUNSEL, GOI (TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX

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THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.01.2019, ALONG WITH ITA.421/2010 AND ITA.424/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN

¶34

¶35

THE HONOURABLE MR. JUSTICE ASHOK MENON

¶36

TUESDAY ,THE 22ND DAY OF JANUARY 2019 / 2ND MAGHA, 1940

¶37

ITA.No. 424 of 2010

¶38

AGAINST THE ORDER/JUDGMENT IN ITA 295(COCH)/2006 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 25.3.2009

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APPELLANT/S:/APPELLANT/ASSESSEE:

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M/S.GEOJIT SECURITIES LIMITED, (GEOJIT FINANCIAL SERVICES LTD) 5TH FLOOR, FINANCE, TOWERS, KALOOR, KOCHI-17.

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BY ADVS. SRI.E.K.NANDAKUMAR (SR.) SMT.PREETHA S.NAIR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS SRI.P.GOPINATH (SR.)

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RESPONDENT/S:/RESPONDENT/REVENUE:

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THE ASST.COMMISSIONER OF INCOME TAX, CIRCLE 1(2), ERNAKULAM.

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BY ADVS. SRI.JOSE JOSEPH, SC, FOR INCOME TAX SRI.P.K.RAVINDRANATHA MENON, SR.COUNSEL, GOI (TAXES)

¶45

THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22.01.2019, ALONG WITH ITA.421/2010 AND ITA.423/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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K.VINOD CHANDRAN & ASHOK MENON, JJ.

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ITA Nos.421, 423 and 424 of 2010

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------------------------------------------Dated this the 22^nd day of January, 2019

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J U D G M E N T

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Vinod Chandran, J.

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The assessee is a Company incorporated, inter alia, with the object of dealing in stocks and securities. The assessee had taken membership in the Bombay Stock Exchange (BSE). The membership fees was sought to be claimed as deduction under Section 32(1) (ii) of the Income Tax Act, 1961 as depreciation. The lower authorities consistently disallowed the claim for all the three assessment years. As of now, the finding of the lower authorities stands vitiated by the reason of the binding declaration made by the Honourable Supreme Court in (2010) 327 ITR 323 (SC) [Techno Shares and Stocks Ltd. v. Commissioner of Income Tax] . The Honourable Supreme Court had held that the membership card of the BSE is an intangible asset and depreciation can be claimed thereon. The issue raised in the above cases is also with respect to the membership taken in the BSE. Hence, the question of

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ITAs421,423&424/10

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-5-

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law has to be answered in favour of the assessee and against the Revenue. The orders of the lower authorities for all the assessment years would stand set aside on that aspect. In view of the above, these ITAs would stand allowed leaving the parties to suffer their respective costs.

Sd/-

K.VINOD CHANDRAN

JUDGE

Sd/-

ASHOK MENON

JUDGE

ITAs421,423&424/10

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APPENDIX OF ITA 421/2010

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APPELLANT'S/S EXHIBITS:

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ANNEXURE-A TRUE COPY OF THE ORDER FOR THE YEAR 2001-02 UNDER SECTION 154 DATED 7/9/2005 ISSUED BY THE RESPONDENT TO THE APPELLANT.

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ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 23/2/2006 ISSUED TO THE APPELLANT.

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ANNEXURE-C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 25/3/2009 ISSUED TO THE APPELLANT.

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ANNEXURE-D TRUE COPY OF THE ORDER IN MISCELLANEOUS PETITION DATED 9/9/2009

[True Copy]

ITAs421,423&424/10

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APPENDIX OF ITA 423/2010

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APPELLANT'S/S EXHIBITS:

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ANNEXURE-A TRUE COPY OF THE ORDER FOR THE YEAR 2003-04 UNDER SECTION 143(3) DATED 26/8/2005 ISSUED BY THE RESPONDENT TO THE APPELLANT

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ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 23/2/2006 ISSUED TO THE APPELLANT.

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ANNEXURE-C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 25/3/2009 ISSUED TO THE APPELLANT.

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ANNEXURE-D TRUE COY OF THE ORDER IN MISCELLANEOUS PETITION DATED 9/9/2009

[True Copy]

ITAs421,423&424/10

-8-

APPENDIX OF ITA 424/2010

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APPELLANT'S/S EXHIBITS:

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ANNEXURE-A TRUE COPY OF THE ORDER FOR THE YEAR 2002-03 UNDER SECTION 154 DATED 20/9/2005 ISSUED BY THE RESPONDENT TO THE APPELLANT.

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ANNEXURE-B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 23/2/2006 ISSUED TO THE APPELLANT.

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ANNEXURE-C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 25/3/2009 ISSUED TO THE APPELLANT.

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ANNEXURE-D

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TRUE COPY OF THE ORDER IN MISCELLANEOUS PETITION DATED 9/9/2009

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[True Copy]

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M/S.Geojit Securities Limited, v. the Asst.Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

M/S.Geojit Securities Limited, v. the Asst.Commissioner of Income Tax

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

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