2010 (2) TMI 1179 - AT - Income Tax

Summary

Issues Involved: Cross appeals by assessee and revenue against order dated 23.7.2008 for assessment year 2005-06.

Assessee's Appeal (ITA 5958/Mum/2008):
The only issue is the disallowance of depreciation on BSE Card.
- Assessee not entitled to depreciation on BSE Membership card as per Hon'ble Bombay High Court decision.
- Decision reversed, order of Learned CIT (A) restored, grounds taken by assessee rejected.

Revenue's Appeal (ITA 5984/Mum/2008):
Grounds against deletion of interest of &8377; 5,85,194/- paid to SEBI.
- Dispute regarding payment of SEBI turnover fees, interest liability finalized in 2004.
- Assessing Officer disallowed interest paid, added to income as prior period expenditure.
- Learned CIT (A) deleted disallowance based on actual payment u/s 43B.
- Co-ordinate Bench decision supports payment as allowable under law.
- Tribunal upholds CIT (A) decision, rejects revenue's grounds.
- Both appeals dismissed on 12th February 2010.

This judgment addressed the issues of depreciation on BSE Card and disallowance of interest paid to SEBI, providing detailed reasoning and legal interpretations for each issue.