Clear penalty notice requirement invalidates concealment penalty where the alleged default was not specifically identified.

A penalty under Section 271(1)(c) cannot rest on a show-cause notice that fails to specify whether the alleged default is concealment of income, furnishing inaccurate particulars, or both. An ambiguous notice does not clearly communicate the precise charge and is therefore defective. Applying the binding Full Bench ruling, the Tribunal correctly treated the penalty as invalid because the notice lacked a clear and unambiguous basis for initiating penalty proceedings. No substantial question of law arose, and the issue was resolved in favour of the assessee.

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Issues: Whether a penalty under Section 271(1)(c) could be sustained where the show-cause notice did not clearly specify whether the charge was concealment of income, furnishing inaccurate particulars, or both.

Analysis: An ambiguous notice cannot found the imposition of penalty. The notice did not make clear the precise basis on which penalty was proposed, and therefore suffered from the same defect identified in the binding Full Bench ruling. The Tribunal had correctly applied that ruling, and no substantial question of law arose.

Conclusion: The penalty was invalid for want of a clear and unambiguous notice specifying the applicable charge; the issue was decided in favour of the assessee.

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