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2023 (1) TMI 283 - HC - Income Tax
Nature of expenditure - Depreciation on purchase of stock exchange membership card being the development fee paid for admission to the Calcutta Stock Exchange u/s 32 - whether the amount of expenditure incurred by the assessee to purchase stock exchange membership card is to be considered as a `tool to trade’ in the business of share trading and broking business and hence akin to `a plant’ and eligible for depreciation as Plant under section 32(1)(i) - AO held the expenditure to be of revenue expenditure.
HELD THAT:- Tribunal has given a categorical finding that the claim for depreciation made by the assessee has to be considered and for such purpose the matter has been restored to the file of the Assessing Officer. Admittedly, before the Assessing Officer such a plea was not raised as the assessee contended that the expenditure was revenue in nature.
No doubt, before the CIT(A) an alternative plea was raised which was considered and negatived but the order of the Special Bench enures in favour of the appellant which has held that the development fee paid to the Stock Exchange is capital in nature.
Therefore, we are of the view that the issue has to be verified by the Assessing Officer in terms of the directions issued by the Tribunal and hence we find there is no substantial question of law arising for the consideration in this appeal. Accordingly, the appeal stands disposed of by affirming the order passed by the learned Tribunal with a further direction to the AO to afford an opportunity of personal hearing to the authorised representative of the appellant, who shall be entitled to place all the decisions which they seek to rely upon. Since the assessment is of the year 1995-96, the Assessing Officer is directed to give an early hearing in the matter and preferably, conclude the proceedings and pass an order within a period of 12(twelve) weeks from the date of receipt of the server copy of this order.