Penalty cannot be levied merely for addition due to adjustment by TPO in Valuation

ACIT Vs IKEA Trading (India) Pvt. Ltd. (ITAT Delhi)

We find that the assessee has sold assets at the WDV of the assets as per company law whereas the TPO held that the assessee ought to have sold the assets at the value of the WDV of the block of assets as per the Income Tax Act. The WDV as per the Income Tax Act may not be /cannot be the fair market value of the assets. The assets were transferred at the book value as per the audited accounts of the assessee which is a recognized method of providing depreciation. Such sale of assets after valuation and

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