Non-mentioning of charge or non striking of irrelevant clauses in the notice-ITAT held penalty notices ambiguous and vague

Del Monte Foods P. Ltd. Vs ACIT (ITAT Delhi) In the matter abovementioned ITAT Delhi vitiated penalty proceedings after examining that non mentioning of charge for which penalty is to be levied makes the notice as much defective as non striking of irrelevant clauses in the notice. Both make the notice ambiguous and vague. During the course of assessment proceedings, AO had made addition on account of Advances written off amounting to Rs.3,20,34,757/- and had initiated penalty proceedings u/s. 271(1)(c). Notice u/s. 274 r.w.s 271 of the Act which was in preprinted performa. The irrelevant claus...