Supreme Court of India

M/s. Techno Shares & Stocks Ltd. v. The Commissioner of Income Tax Iv

Neutral citation
Reported as [2010] 11 S.C.R. 437
Bench S.H. Kapadia and K.S. Panicker Radhakrishnan JJ.
Decided 9 September 2010

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

What the Court ordered

We hold that the said right of membership is a "business or commercial right" which G gives a non-defaulting continuing member a right to access the Exchange and to participate therein and in that sense it is a licence or akin to licence in terms of Section 32(1)(ii) of the 1961 Act.

Judgment, page 21

From the headnote

Income Tax Act, 1961 - 32(1)(ii) - Depreciation under - Whether permissible on the cost of a Stock Exchange Membership Card - Held: As per Bombay Stock Exchange Rules, membership right is a 'Business or Commerciar Right' - Therefore, depreciation is allowable on the cost of a Stock Exchange Membership Card - Bombay Stock Exchange Rules - Rules 5 to 10 and 16 - Bombay stock exchange Bye- Laws-Bye-law 400. The question which arose for consideration in the instant appeals was whether depreciation u/s. 32(1)(ii) of Income Tax Act, 1961 is allowable on the cost of a Stock Exchange Membership Card.

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