Mere use of term ‘mens rea’ not establishes willful attempt to evade tax

Medha Servo Drives Private Limited & Anr. Vs Assistant Commissioner of State Tax (Calcutta High Court) The appellants had explained that there is absolutely no mens rea on their part and there was no intention to evade payment of tax. Nevertheless, the Adjudicating Authority had imposed full tax and penalty upon the appellants and aggrieved by such order, the appellant had filed the appeal before the First Appellate Authority. The short issue which the Appellate Authority was required to consider as to whether there is any mens rea on the part of the appellants in attempting to evade payme...