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2014 (5) TMI 1125

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..... : Shri Ravi Prakash O R D E R PER P.M. JAGTAP, A.M. : These two appeals, one filed by the assessee being ITA No. 7375/Mum/2010 and the other filed by the Revenue being ITA No. 8217/Mum/2010 are cross appeals which are directed against the order of ld. CIT(A) -39, Mumbai dated 17-8-2010. 2. As submitted by the ld. Counsel for the assessee at the outset, although there are as many as four grounds raised in the appeal of the Revenue, the relief allowed by the ld. CIT(A) which is disputed therein is only to the extent of ₹ 7,85,679/- and the tax effect involved in the appeal of the Revenue is less than the monetary limit of ₹ 3 lacs fixed by the CBDT vide Instruction No. 3 of 2011 dated 9-2-2011 reported in (2011 .....

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..... securities and commodities. The return of income for the year under consideration was filed by it on 28-10-2007 declaring total income at nil . In the said return, depreciation of ₹ 1,42,500/- was claimed by the assessee @ 25% on the amount of ₹ 7,60,000/- paid for acquiring rights of Multi Commodities Exchange claiming that it was intangible asset in the form of commercial right as per provisions of section 32(1)(ii) of the income Tax Act, 1961 as amended w.e.f. 1-4-1998. This claim of the assessee, however, was not found acceptable by the A.O. for the following reasons:- 1) The MCX membership right is not an asset but a deposit or a personal privilege granted to a member for trading rights on the MCX platform. 2) Depr .....

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..... ino Securities (P.) Ltd. Vs. ITO [2012] 134 ITD 321 (Mum) and in the case of Sunidhi Consultancy Services vs. DCIT reported in [2012] 50 SOT 223 (Mum), it is observed that the claim of depreciation made by the assessee in these cases was in respect of shares issued by the Bombay Stock Exchange in lieu of membership cards under the scheme of Corporatisation and Demutualisation and keeping in view the said scheme, it was held by the Tribunal that depreciation claimed by the assessee on the shares of Bombay Stock Exchange could not be allowed. The facts involved in the cases of Sino Securities (P.) Ltd. (supra) and Sunidhi Consultancy Services (supra) decided by the Tribunal thus are materially different from the facts of the present case inas .....

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