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2016 (1) TMI 252 - AT - Income TaxPenalty levied by the AO u/s 271(1)(c) - disallowance of license expenditure - CIT(A) deleted the penalty - Held that:- There is no dispute that the assessee has furnished all the particulars relating to the payment made to M/s GDS. There is also no dispute with regard to the fact that the assessee has already been using the trade mark and technical knowhow for the past several years by payment of annual royalty. By way of an amendment agreement, the assessee has agreed to make a lumpsum payment instead of annual payment. Accordingly, the assessee has entertained the view that the same is allowable as revenue expenditure. However, the AO has taken the view that the same is capital in nature, since the benefit of expenditure has spread for a period of about 50 years. The Ld A.R submitted that the view taken by the assessee finds support from the subsequent decision rendered by the Hon'ble Bombay High Court in the case of Essel Propack Ltd (2010 (3) TMI 293 - BOMBAY HIGH COURT). Before us, the assessee also placed reliance on the decisions rendered by Hon'ble Supreme Court in the case of Alembic Chemical works Co. Ltd (1989 (3) TMI 5 - SUPREME Court ); Assam Bengal Cement Vs. CIT (1954 (11) TMI 2 - SUPREME Court ), M.K. Bros Vs. CIT (1972 (8) TMI 5 - SUPREME Court ). Thus, we notice that the assessee has made a claim on the basis of certain judicial pronouncements and the same was not acceptable to the AO. Thus, the impugned issue becomes debatable issue. Accordingly, we are of the view that, merely because the claim of the assessee was not acceptable to the tax authorities, the disallowance made on that basis will not give rise to concealment of particulars of income or furnishing of inaccurate particulars of income. Accordingly, we uphold the view taken by Ld CIT(A). - Decided in favour of assessee.
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