Section 274 Penalty Notice invalid if Specific Fault/Charge Not Conveyed

DCIT, Central Circle Vs Sai Sugam Enterprises (ITAT Mumbai) Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai has recently given a significant ruling in the case of DCIT, Central Circle Vs Sai Sugam Enterprises. The tribunal has highlighted the need for precision in penalty notices, particularly those issued under section 274 of the Income Tax Act. According to the tribunal, if such notices do not specify the exact charge against the assessee, they are invalid and cannot sustain a penalty. Issue of the Penalty Notice: The revenue department challenged an order from the Commissioner...