Vague Penalty Notice Invalidates Search Penalty Under Section 271AAB: ITAT Ranchi

Suresh Kumar Modi HUF Vs ITO (ITAT Ranchi) The ITAT, Ranchi Bench, held that penalty u/s 271AAB cannot survive where the notice u/s 274 is vague and does not specify the exact charge or clause invoked. In this case (AY 2016-17), though the assessee had admitted undisclosed income during search and paid tax, the AO issued a routine penalty notice without mentioning which specific limb of s.271AAB was applicable. The Tribunal noted that the notice merely contained standard language (“concealed particulars / furnished inaccurate particulars”) and failed to disclose the statutory basis for lev...