HC RESERVES VERDICT ON BSE CARD DEPRECIATION
The Bombay High Court (HC) has reserved its judgement in an appeal filed by the Income Tax (I-T)
Department against Bombay Stock Exchange (BSE) brokers who have claimed depreciation on their stock exchange membership cards while calculating tax liabilities. The I-T department's case was that the cards are not the property of the cardholders, but a privilege given to them. Also, it was not capable of diminishing in value due to wear and tear and cannot be depreciated. But brokers argued that it was a license for the firms to carry on their trading activities. It was a commercial right and the firms were entitled to claim depreciation for this intangible asset under the I-T Act.
Department against Bombay Stock Exchange (BSE) brokers who have claimed depreciation on their stock exchange membership cards while calculating tax liabilities. The I-T department's case was that the cards are not the property of the cardholders, but a privilege given to them. Also, it was not capable of diminishing in value due to wear and tear and cannot be depreciated. But brokers argued that it was a license for the firms to carry on their trading activities. It was a commercial right and the firms were entitled to claim depreciation for this intangible asset under the I-T Act.
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