2024 (7) TMI 1305

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....se and in law, the notice issued under section 274 r.w.s 271(1)(c) of the Income Tax Act, 1961 ('the Act') and the penalty order passed under section 271(1)(c) of the Act, imposing penalty on addition of Rs. 21,89,970/-on account of disallowance of depreciation on non-compete fees is illegal, bad in law and without jurisdiction. 2. That in view of the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals) ("CIT(A)") has grossly erred in upholding the action of the Assessing Officer ("AO") imposing the penalty of Rs. 7,44,370/- u/s 271(1)(c) of the Act which is illegal, unwarranted and against the facts of the case. 3. That in view of the facts and circumstances of the case and in l....

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....law and on facts in not appreciating that this is a simple case of disallowance made in the assessment due to differences of opinion between the AO and Assessee. Hence, no penalty should be levied in this case. 8. That, in view of the facts and circumstances of the case and in law, no penalty is leviable on account of addition of Rs. 21,89,970/- account of disallowance on of depreciation on non-compete fees. Depreciation on noncompete fees is a debatable issue and as such no penalty u/s 271(1)(c) can be levied. 9. In view of the facts and circumstances of the case and in law, the CIT(A) has grossly erred in upholding the action of AO of imposing the penalty on disallowance of depreciation on non-compete fees, ignoring the ....

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.... by the assessee. As against the order of Ld.CIT(A) dated 18/09/2020, the assessee has preferred the present appeal on the grounds mentioned above. 5. The Ld. Counsel for the vehemently submitted that no penalty is leviable on account of addition of Rs. 21,89,970/- on account of disallowance of depreciation on non-compete fees. Depreciation on non-compete fees is a debatable issue and as such no penalty u/s 271(1)(c) can be levied, thus, sought for deletion of the penalty. 6. Per contra, the Ld. DR submitted that the Ld.CIT(A) has adjudicated all the issues involved in the Appeal and relying on the orders of the Lower Authorities sought for dismissal of the Appeal filed by the Assessee. 7. We have heard the parties, perused the mat....