Specific penalty charge in a search notice is essential; an unspecified Section 271AAB notice cannot sustain penalty.

A penalty notice issued under Section 274 read with Section 271AAB(1) must specify the applicable clause-(a), (b) or (c)-because each prescribes distinct penalty consequences. Identifying the proposed clause gives the assessee a definite charge and a meaningful opportunity to respond. An unspecified notice is defective and cannot support a search-related penalty under Section 271AAB. The note distinguishes contrary authority where the defective-notice objection was raised for the first time before the High Court, unlike an objection raised and adjudicated before the first appellate authority.

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Issues: Whether a penalty notice issued under Section 274 read with Section 271AAB(1) without specifying the applicable clause of Section 271AAB(1) validly supports levy of search-related penalty.

Analysis: Section 271AAB(1) provides distinct penalty consequences under clauses (a), (b) and (c). The notice must identify the clause proposed to be invoked so that the assessee has a definite charge and an effective opportunity to respond. The notice did not specify the applicable limb. The jurisdictional ruling concerning an equally vague notice under Section 271AAB governed the matter. The contrary ruling relied upon by Revenue was distinguishable because the defective-notice plea there had been raised for the first time before the High Court, whereas the plea here was raised before the first appellate authority and adjudicated.

Conclusion: The unspecified notice was defective, and the consequent penalty under Section 271AAB was unsustainable, in favour of the assessee.

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