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2020 (10) TMI 790 - AT - Income TaxNature of expenditure - admission fees paid to Stock Exchange - Payment made to MCX-SX Stock Exchange towards admission fees and processing charges. revenue or capital expenditure - HELD THAT:-The Hon'ble Apex Court in the case of Alembic Chemical Work Company Ltd. [1989 (3) TMI 5 - SUPREME COURT] had elucidated and affirmed that "once and for all payment" when it comes into existence, an asset or an advantage of enduring benefit in absence of special circumstances leading to an opposite conclusion is a capital expenditure and not attributable to revenue. This is the primary and basic test. Assessee has not been able to establish any special circumstances for an opposite conclusion in the present case - expenditure incurred was for acquiring and bringing into existence an asset or advantage of enduring benefit and not for running business to produce more profits. Hon'ble Delhi High Court in the case of Abhipra Capital Ltd. v. DCIT (Investigation) [2018 (2) TMI 1294 - DELHI HIGH COURT] on identical facts had decided the issue in favour of the revenue. Cases relied on by the learned A.R., had proceeded on the basis that assessee on incurring the expenditure for acquiring membership of a stock exchange has not become owner of any asset and therefore cannot be said that any enduring benefit had accrued to the assessee. Whereas in light of Hon'ble Supreme Court judgement in the case of Techno Shares and Stocks Limited [2010 (9) TMI 6 - SUPREME COURT] membership of stock exchange is to be treated as a capital asset. Therefore, CIT(A) has rightly treated the admission fee as a membership of the stock exchange capital asset and allowed alternative plea of assessee that depreciation is to be granted on the same. - Decided against assessee.
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