LAWS(MAD)-2006-9-104

COMMISSIONER OF INCOME TAX Vs. S VENKATASUBRAMANIAM

Decided On September 27, 2006
COMMISSIONER OF INCOME TAX, COIMBATORE Appellant
V/S
S.VENKATASUBRAMANIAM Respondents

JUDGEMENT

(1.) THE present appeals in T. C. (A) Nos. 67 and 68 of 2003 are filed under Section 260a of the Income Tax Act, 1961 by the Revenue against the order passed in I. T. A. Nos. 100/mds/97 and 325/mds/99 dated 03. 01. 2003 by the Income Tax Appellate Tribunal, Madras, 'a' Bench. On 17. 10. 2003, this Court admitted the appeal and formulated the following question of law.

(2.) THE facts leading to the above question of law are as under:

(3.) LEARNED Standing Counsel appearing for the Revenue submitted that the assessee had incurred expenditure towards payment of admission fees as well as Infrastructure Development Fund paid to the Coimbatore Stock Exchange for the purpose of obtaining the right to trade in share and the benefit derived by the assessee is of enduring nature. Hence the same is only a capital expenditure. The Membership Card is an asset and it gives the benefit of an enduring nature lasting beyond the assessee's closure of business. By making these payments, the assessee has been given the privilege to function within the premises of Coimbatore Stock Exchange. Hence it is only capital in nature. To support the above contention, Revenue relied on the following judgments: a) 276 ITR 567 (Cal.) in the case of Rajendra Kumar Bachhawat Vs. Commissioner of Income-tax. b) 272 ITR 138 (Raj.) in the case of Satya Narain Modani Vs. Income-tax Officer and Another. c) 263 ITR 368 (Raj.) in the case of Ravindra Kumar Jain Vs. Commissioner of Income-tax and Others. d) 225 ITR 792 (SC) in the case of Punjab State Industrial Development Corporation Ltd. Vs. Commissioner of Income-tax.