Penalty for inadmissibility of legal claim not justified

Merely because a legal claim has been made, and even though the said claim has been found to be inadmissible, penalty under section 271(1)(c) cannot be imposed ACIT Vs Sumit P. Bhattacharya (ITAT Mumbai)- Assessee was an employee of M/s Procter and Gamble India Ltd., which is a group company of Procter and Gamble of USA. The company had given appreciation rights to the assessee. As regards the judgement of the Apex Court in the case of Union of India Vs. Dharmender Textiles, 306 ITR 307, we find that CIT(A) as well as ITAT have not cancelled penalty on the ground of mens rea, therefore, the j...