2011 (1) TMI 1351 - AT - Income Tax

Summary

Issues involved:
The issue involves a miscellaneous application filed by the assessee seeking a fresh order from the Tribunal after the ex-parte order dated 21/5/2010 was passed in the revenue's appeal regarding depreciation on the value of a membership card of the Bombay Stock Exchange.

Details of the Judgment:

1. Issue of Depreciation on Membership Card:
The CIT(A) had allowed the claim of the assessee based on the decision of the ITAT Mumbai Bench in the case of Techno Shares and Stock Ltd. However, the Hon'ble Bombay High Court later reversed this decision, stating that depreciation under section 32 of the Income Tax Act cannot be allowed on a stock exchange membership card.

2. Ex-Parte Order and Subsequent Developments:
The assessee contended in the miscellaneous application that the ex-parte order was passed as their Chartered Accountant could not appear, leading to reliance on the Bombay High Court's decision. It was highlighted that the Hon'ble Supreme Court later overturned the High Court's decision, supporting the assessee's claim for depreciation on the membership card.

3. Rectification of Tribunal's Order:
After hearing submissions, the Tribunal acknowledged the subsequent Supreme Court decision, which necessitated rectifying the order. Citing the case of ACIT vs. Saurashtra Kutch Stock Exchange Ltd., the Tribunal held that the order allowing the revenue's appeal should be rectified, dismissing the appeal and upholding the CIT(A)'s decision to allow depreciation on the membership card.

4. Conclusion:
The Tribunal allowed the miscellaneous application, rectifying the order in favor of the assessee based on the subsequent Supreme Court decision. The order of the Tribunal was amended to dismiss the revenue's appeal and uphold the depreciation claim on the stock exchange membership card.

This judgment showcases the importance of subsequent legal developments and the binding nature of Supreme Court decisions on Tribunal orders, leading to the rectification of the initial decision in favor of the assessee.