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[2009] 184 Taxman 103 (Bombay)/[2010] 323 ITR 69 (Bombay)/[2009] 225 CTR 337 (Bombay) [2009] 184 Taxman 103 (Bombay) HIGH COURT OF BOMBAY Commissioner of Income-tax, Mumbai v. Techno Shares & Stocks Ltd. V.C. DAGA AND J.P. DEVADHAR, JJ. IT APPEAL NOS. (L) 971 OF 2006, (L) 958 OF 2009, 218 OF 2007 AND 157 OF 2008 & OTHERS SEPTEMBER 11, 2009 Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/Rate of - Whether expression 'licences' is used in section 32(1)(ii) to apply to licences relatable to intellectual properties only and not to all licences - Held, yes - Whether since BSE card is not a business or commercial right relating to intellectual property rights, depreciation cannot be allowed on same - Held, yes Interpretation of statutes - Rule of ejusdem generis FACTS The assessees had acquired the BSE card to carry on their share broking business and had claimed depreciation on the same by treating it as an intangible asset enumerated in section 32(1)(ii). The Tribunal allowed the assessees' claim holding that the BSE card acquired by an assessee on or after 1-4-1998 is an intangible asset covered under section 32(1)(ii) and depreciation is allowable on the same. On appeal to the High Court, the revenue contended that the BSE card is only a personal privilege granted to a member to trade in shares on the floor of the stock exchange and such a privilege cannot be equated with the expression 'licences' or the expression 'any other business or commercial right of similar nature' enumerated in section 32(1)(ii). HELD On a perusal of section 32 as amended with effect from 1-4-1998, it is seen that the Legislature has extended depreciation to the intangible assets which were until then restricted to buildings, machinery, plant or furniture. It is pertinent to note that even after the amendment, the depreciation under section 32 is restricted to the tangible/intangible assets which are specifically enumerated therein and depreciation is not allowable on all tangible/intangible assets. In other words, depreciation even under the amended section 32 is allowable only on the restricted categories of tangible/intangible assets which are specifically…

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