ITAT Deletes Section 271(1)(c) Penalty for Leave Encashment Disallowance

Intervalve Poonawalla Pvt. Ltd Vs DCIT (ITAT Pune) Income Tax Appellate Tribunal (ITAT), Pune Bench, has set aside a penalty of Rs. 3,59,646 levied under Section 271(1)(c) of the Income Tax Act, 1961, against Intervalve Poonawalla Pvt. Ltd. The penalty pertained to a disallowance of Rs. 11,08,482 claimed as provision for leave encashment for the assessment year 2014-15. The Tribunal’s decision, pronounced on June 4, 2025, underscored that merely making a claim, even if ultimately unsustainable, does not amount to concealment or furnishing inaccurate particulars if full disclosures are ma...