Specific penalty category in a section 271AAB notice is mandatory; an unspecified charge invalidates the penalty proceedings.

A penalty notice issued under section 274 read with section 271AAB must specify the applicable category of penalty because section 271AAB prescribes distinct categories with different consequences. Failure to identify the precise category prevents the assessee from responding effectively to the charge and creates an incurable defect in the initiation of penalty proceedings. Consequently, a penalty order founded on such an invalid notice is unsustainable, and the penalty was deleted.

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Issues: Whether a penalty under section 271AAB could survive where the notice issued under section 274 read with section 271AAB did not specify the applicable limb or category of penalty.

Analysis: Section 271AAB contemplates distinct categories attracting different penal consequences. The notice did not identify the specific category under which the assessee was proposed to be penalised. This deprived the assessee of an effective opportunity to answer the precise charge and constituted an incurable defect in the initiation of penalty proceedings.

Conclusion: The notice was invalid; consequently, the penalty order founded on that notice was unsustainable and the penalty was deleted.

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