No penalty for Making of claim not sustainable in law unless mens rea established

Thane District Central Co.-Op. Bank Ltd. Vs ACIT (ITAT Mumbai)

Mere making of claim, which was not sustainable in law, by itself, did not amount to furnishing of inaccurate particulars, unless mens rea was established, therefore, levy of penalty under section 271(1)(c) was not justified.

FULL TEXT OF THE ITAT JUDGMENT

The assessee has filed the present appeal against the order of the Commissioner (Appeals)-2, Mumbai, dated 30-7-2015, pertaining to assessment year 2009-10, confirming the penalty levied by the assessing officer under section 271(1)(c) of the Income Tax Act.

2. The assessee has raised the following grounds of appeal:

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