Taxpayer allowed depreciation on acquired business rights; penalty under s.270A held premature absent substantive disallowance

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....The ITAT held that the assessee is entitled to claim depreciation on business/commercial rights arising from manufacturing, supply and maintenance contracts acquired from third parties, finding the disallowance untenable in light of the jurisdictional tribunal's identical prior conclusion in the assessee's own case; accordingly the claimed depreciation is allowable. The Tribunal further held that initiation or imposition of a penalty under s. 270A for alleged under-reporting/misreporting is premature and inadmissible at this stage because any liability for penalty is consequential upon a substantive disallowance which has not been sustained.....