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TMI Blog2012 (6) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Bar hotel for a total consideration of a little over Rs.80 lakhs. The assessee's case is that out of the total consideration paid, Rs.60 lakhs and odd represents sale price paid for the purchase of FL-3 licence issued for retail sale of liquor in Bar hotel under Rule 13 of the Foreign Liquor Rules prescribed under the Kerala Abkari Act, The assessment involved in this case is for the year 2004-05 and in the returns filed assessee claimed depreciation at 25% of the cost of purchase of abkari licence. It is seen from the orders that this is the first scrutiny assessment after the purchase of the hotel with the abkari licence by the assessee. Therefore, it is not known whether in the three preceding assessment years the assessee made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ltd. v. CIT [2010] 327 ITR 323/193 Taxman 248 wherein the Supreme Court held that stock brokers purchasing Bombay Stock Exchange membership card are entitled to depreciation on the cost of acquisition as an intangible asset falling under Section 32(1)(ii) of the Act. Standing Counsel for the department specifically referred to para 29 of the above judgment wherein the Honourable Supreme Court has clarified that the judgment is rendered based on the conditions on which BSE membership card is exploited by the stock brokers. Standing Counsel contended that the scope of the term "intangible assets" covered by Section 32 of the Income-tax Act as explained by the Bombay High Court in their judgment in CIT v. Techno Shares & Stocks Ltd. [2009] 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. (ii) Reconstitution of partnership by addition or deletion of members or reconstitution of Directors in a Company resulting in change of ownership which owns/manages or operates any licence issued under this rule shall be deemed to be transfer of licence." It is clear from the above that the licence is treated as a transfearable asset and the Excise Commissioner is authorised to approve transfers. Obviously, when licence is transferable according to the Rules under which it is issued, it is for consideration and there is no dispute that the appellant has paid massive amount for transfer of the licence, which will be renewed on an year to year basis. Once FL-3 licence is obtained that will be renewed every year unless general policy de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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