ITAT deletes Section 271(1)(c) Penalty s Notice Issued without specifying limb

Orient Clothing Company Private Limited Vs ACIT (ITAT Delhi) Introduction: The Orient Clothing Company Private Limited contested against the penalty imposed under section 271(1)(c) of the Income Tax Act. The issue revolved around the vagueness in the notices issued by the Assessing Officer (AO) without specifying the particular limb of the penalty. Detailed Analysis: The AO initiated penalty proceedings based on the disallowance of sundry balances written off. However, the notices issued lacked specificity, and the Assessee argued that this rendered the penalty invalid. The legal argument focu...