Appeal allowed due to procedural defects in penalty imposition under section 271(1)(c).

The Tribunal allowed the appeal, condoning the delay in filing due to valid reasons provided. The penalty imposed under section 271(1)(c) was deemed invalid as the Assessing Officer failed to specify the default, rendering the penalty proceedings defective and unsustainable. The lack of clarity regarding the default for the penalty led to the Tribunal ruling in favor of the assessee.

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Issues involved:
The judgment involves confirming the penalty imposed under section 271(1)(c) of the Income Tax Act, 1961 without ensuring proper notice and specifying the default for which the penalty was proposed.

Issue 1: Condonation of Delay in Filing Appeal
The appeal was delayed by one day, and the reasons for the delay were explained by the assessee's representative, citing sickness of the assessee and technical problems. The Tribunal, after considering the submissions and supporting documents, condoned the delay in filing the appeal.

Issue 2: Validity of Penalty Imposed under Section 271(1)(c)
The assessee contended that the penalty levied under section 271(1)(c) was not justified as proper notice was not received, and the Assessing Officer (AO) did not specify the default for which the penalty was initiated. The AO issued a notice mentioning both concealment of income and furnishing inaccurate particulars, which was deemed defective by various courts. The AO's lack of clarity regarding the default rendered the penalty order invalid. Citing precedents, the Tribunal held that the defective notice made the penalty proceedings invalid and unsustainable in law, ultimately allowing the assessee's appeal.

Key Takeaways:
- The delay in filing the appeal was condoned due to valid reasons provided.
- The penalty imposed under section 271(1)(c) was deemed invalid as the AO failed to specify the default for which the penalty was initiated, rendering the penalty proceedings defective and unsustainable in law.
- The Tribunal allowed the assessee's appeal based on the defects in the penalty proceedings and the lack of clarity regarding the default for which the penalty was imposed.

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