Penalty notice must specify the exact charge; an omnibus section 271(1)(c) notice was held vague and unsustainable.

A penalty notice under section 274 read with section 271(1)(c) was invalid because it did not specify whether the allegation was concealment of income or furnishing inaccurate particulars of income. The failure to strike off the irrelevant limb was treated as a jurisdictional defect, since the assessee must be informed of the exact charge in the statutory notice itself. References in the assessment order or penalty order could not cure the defect. The omnibus notice was therefore held vague and unsustainable, and the penalty was deleted in favour of the assessee.

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Issues: Whether a penalty notice under section 274 read with section 271(1)(c) of the Income-tax Act, 1961 was invalid for not specifying the precise charge, i.e. concealment of income or furnishing of inaccurate particulars of income.

Analysis: The notice did not strike off the irrelevant limb and did not disclose the specific allegation. The omission was treated as a jurisdictional defect because the assessee must be informed of the exact charge through the statutory notice itself. The defect was held not curable by references in the assessment order or penalty order. An omnibus notice was found to be vague and unsustainable in penalty proceedings under section 271(1)(c).

Conclusion: The penalty notice was held invalid and the penalty was directed to be deleted in favour of the assessee.

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