2011 (12) TMI 627 - AT - Income Tax

Summary

Issues involved: Discontinuance of business, allowability of depreciation on BSE card, employer/employees contribution to PF.

Discontinuance of business: The assessee, a share broker, had not undertaken share trading activities due to SEBI orders. CIT(A) disallowed expenses, stating no business existed. Assessee argued business was suspended, not closed. Tribunal held business not closed, following similar case precedent.

Interest and dividend income: Held assessable as business income due to SEBI orders suspending business.

Depreciation on BSE card: Dispute over allowability. Tribunal allowed depreciation, citing Supreme Court ruling that BSE card is an intangible asset entitled to depreciation.

Employer/employees contribution to PF: Disallowed by AO for late payment. Tribunal directed AO to allow deduction if contributions paid before due date of filing return, following Supreme Court judgment.

In conclusion, all appeals of the assessee were allowed by the Tribunal on December 23, 2011.