Penalty U/s 271(1)(c) Deleted – Defective Notice Without Specifying Charge Vitiates Proceedings

Mahendra Brothers Vs DCIT (ITAT Mumbai) Mumbai ITAT deleted penalties levied u/s 271(1)(c) across multiple years, holding that failure to specify the exact charge (concealment vs. inaccurate particulars) in notice u/s 274 renders penalty proceedings invalid. The Tribunal observed: The AO issued standard/omnibus notices without striking off irrelevant limb, making the charge ambiguous Such defective notice violates principles laid down by Bombay HC (Full Bench) in Mohd. Farhan A. Shaikh Penalty proceedings are independent and must clearly inform the assessee of the specific allegation Additio...