Penalty unsustainable as issue of claim of depreciation on non-compete fee is highly contentious: ITAT Delhi

Metro Tyres Limited Vs ACIT (ITAT Delhi)

ITAT Delhi held that penalty u/s 271(1)(c) of the Income Tax Act unsustainable as allowability of deprecation on non-compete fee is highly contentious as different views are taken by various High Courts and matter is pending before Supreme Court.

Facts- The assessment order came to be passed against the assessee by making disallowance on account of depreciation claimed on non compete fee of Rs. 21,89,970/- and disallowance u/s 14A of the Act of Rs. 7,37,674/-. In the quantum Appeal, CIT(A) deleted the disallowance mad

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