https://www.taxtmi.com/caselaws?id=37784 The court upheld the Tribunal's decision in dismissing the revenue's petition, finding that the disallowed expenses, including a reserve for bonus, were made in good faith and did not warrant a penalty under s. 271(1)(c) of the Income Tax Act. The court agreed that the reserve for bonus, though disallowed, was disclosed in the balance sheet, indicating no intent to conceal. As mens rea is crucial in penalty proceedings, the court concluded that there was no justification for imposing a penalty, ultimately dismissing the petition without costs. en-us Wed, 24 Jan 1979 00:00:00 +0530 Thu, 01 Apr 2010 11:14:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37784 The court upheld the Tribunal's decision in dismissing the revenue's petition, finding that the disallowed expenses, including a reserve for bonus, were made in good faith and did not warrant a penalty under s. 271(1)(c) of the Income Tax Act. The court agreed that the reserve for bonus, though disallowed, was disclosed in the balance sheet, indicating no intent to conceal. As mens rea is crucial in penalty proceedings, the court concluded that there was no justification for imposing a penalty, ultimately dismissing the petition without costs. Case-Laws Income Tax Wed, 24 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37784