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 made u/s 14A of the Act and sustained t...