1 87 itxa 6945.10.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION K INCOME TAX APPEAL NO.6945 OF 2010 The Commissioner of Income Tax-4 .. Appellant Vs. M/s Tata Securities Pvt. Ltd. .. Respondent. None for the Appellant. Mr. P.C. Tripathi for the Respondent. CORAM : J.P. DEVADHAR & K.K. TATED, JJ. DATE : 19TH SEPTEMBER, 2011. P.C. 1 None for the Appellant. 2 Three questions of law raised by the Revenue in this Appeal read thus: a) Whether on the facts and circumstances of the case and in law, the Tribunal was correct in holding that the BSE Card is an intangible asset within the definition of section 32(1)(ii) of the Income Tax Act, 1961? 2 87 itxa 6945.10.doc b) Whether the ITAT was correct in holding that the membership card of Bombay Stock Exchange is entitled to depreciation without considering whether it really suffers from diminution in its value? c) Whether on the facts and circumstances of the case and in law, the Tribunal justified in deleting the addition of Rs.7,27,338/- on account of interest on SEBI as per SEBI liability Regularization Scheme, 2004 when the same was an expenditure that did not crystallize during the year? 3 The first two questions raised by the Revenue are covered in favour of the Assessee by the decision of the Apex Court in the case of Techno Shares and Stocks Limited vs. Commissioner of Income Tax reported in (2010) 327 ITR 323 (SC). Hence, the first two questions raised by the Revenue cannot be entertained. 4 As regards the third question is concerned, the dispute is whether the interest liability of Rs.7,27,338/- payable to SEBI was a crystalised liability in the assessment year in question viz. A.Y. 2005-2006. The Assessing Officer while allowing the turnover fees paid to SEBI, disallowed the interest paid to SEBI, by holding the same to be prior period expenditure. 5 The ITAT in para 10 of its order has recorded a finding of fact that the interest liability accrued in the assessment year in question because, the 3 87 itxa 6945.10.doc intimation from SEBI to pay the interest under SEBI (Interest liability Regularisation Scheme) 2004 was received by the Assessee under a letter dated 16.10.2004 which falls within the A.Y. 2005-2006 and therefore, the Assessee was entitled to deduction of the interest liability amounting to Rs.7,27,338/- crystalised and paid during the year in question. In this view of the matter, deletion of the addition of Rs.7,27,338/- by the ITAT cannot be faulted. Accordingly, the present Appeal is dismissed with no order as to costs. (J.P. DEVADHAR, J.) (K.K. TATED, J.)