https://www.taxtmi.com/caselaws?id=470280 Penalty for under-reporting of income was not leviable on disallowance of leave-encashment expenditure because the allowability of a provision-based claim versus a claim allowable only on actual payment was debatable. Although the expenditure was disallowed despite tax-audit reporting, penal liability required the Revenue to establish mens rea in making the claim. As no mens rea was established, the penalty order was quashed in favour of the assessee. en-us Wed, 10 Jun 2026 00:00:00 +0530 Tue, 21 Jul 2026 19:10:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470280 Penalty for under-reporting of income was not leviable on disallowance of leave-encashment expenditure because the allowability of a provision-based claim versus a claim allowable only on actual payment was debatable. Although the expenditure was disallowed despite tax-audit reporting, penal liability required the Revenue to establish mens rea in making the claim. As no mens rea was established, the penalty order was quashed in favour of the assessee. Case-Laws Income Tax Wed, 10 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470280