Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2013 (8) TMI 1024

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... a right has to considered a capital asset. In the cases of Techno Shares and Stocks Ltd. (2010 (9) TMI 6 - SUPREME COURT OF INDIA ) and Smifs Securities Ltd. (2012 (8) TMI 713 - SUPREME COURT ) Hon'ble Apex court has held that Stock exchange membership cards were assets eligible for depreciation under section 32 of the Act. In our opinion membership fees paid by the assessee under the head exchang .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... lant respectfully submits that both the payments are of the nature of revenue expenditure and should therefore be allowed in full. 2. Your appellant prays for a leave to allow it to add to or alter the above ground. Assessee-firm is a commodity broker and had received income from brokerage, commission and interest during the year under consideration. It had filed return of income on 29.10.200 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... for doing the business for a long time period could not be regarded a revenue expenditure. Accordingly, he disallowed the admission fees paid by the assessee to MCX and NCDEX as revenue expenditure and capitalized the same. 2.1. Assesee preferred an appeal before the First Appellate Authority(FAA).After considering the order of the AO and the submission of the assessee he held that expenditure .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... owards membership fees of two exchanges Fees paid by it was onetime payment and as a result assessee was allowed to carry out business on both the exchanges. Such a right has to considered a capital asset. In the cases of Techno Shares and Stocks Ltd. (327 ITR 323) and Smifs Securities Ltd. (348 ITR 302) Hon'ble Apex court has held that Stock exchange membership cards were assets eligible for .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates