2014 (10) TMI 103

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....tment Manager of HSBC Mutual Funds. The Security Exchange Board of India (SEBI) has approved the Assessee to act as an Investment Manager of Mutual Funds. The certificate for registration was issued in its favour with effect from 16th September 2005. 3. There was a depreciation chart filed as Annexure to Tax Audit Report and Assessing Officer notes that the Assessee had claimed depreciation on intangible assets comprised of pre-operative expenses of Rs. 77,58,599/- and SEBI registration fee of Rs. 25,00,000/-. The Assessee claimed that this expenditure was incurred in securing registration from SEBI. Therefore, it was an intangible asset on which depreciation under Section 32 (1) (ii) of the Income Tax Act was claimed. The Assessee had a....

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....cer. 6. The Tribunal, in paragraph no.8 of the order under challenge has referred to the very claim which was raised in the Assessment Year 2003-2004 and the stand of the Assessing Officer in relation thereto. The Tribunal held that the fees paid for registration of Mutual Funds to SEBI and the pre-operative expenses prior to such registration have already been treated as intangible assets and form part of the block of assets of the assessee as on 1st April 2004. The consistency, therefore, should have been maintained by granting the claim. 7 Mr. Tejveer Singh, appearing in support of this Appeal places reliance upon a judgment of the Delhi High Court which is delivered in the case of  Sharp Business System v/s The Commissioner o....

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....9. Having perused this Appeal Memo including the impugned orders, we are of the opinion that the Delhi High Court judgment has been delivered on 5th November 2012 and the impugned order was passed on 15th June 2011. The Tribunal has essentially based its conclusion on the consistent stand of the Assessee and that of the Assessing Officer. In dealing with the shift in stand for the subject assessment year, the Tribunal found that this claim of depreciation was raised in the assessment year 2003-2004. The Assessee claimed that it is allowable as per the provisions of Income Tax Act on block of assets under the head "intangible assets". The Assessing Officer allowed the claim for that assessment year by an order under Section 143(3) dated 28.0....