Specificity of penalty charge is mandatory: notices retaining both section 271(1)(c) limbs cannot sustain penalty proceedings.

Specificity of penalty charge is mandatory: notices retaining both section 271(1)(c) limbs cannot sustain penalty proceedings. https://www.taxtmi.com/highlights?id=102967 Penalty notices under section 271(1)(c) must clearly identify whether the charge concerns concealment of income or furnishing inaccurate particulars. The two limbs are independent and may require different explanations and treatment; therefore, a notice retaining both alternatives without specifying the applicable limb denies the assessee a proper opportunity to defend. Recording satisfaction to initiate penalty proceedings does not cure this defect. Applying this principle, the High Court treated the defective notice as invalid, upheld deletion of the penalty, and dismissed the revenue's appeal. en-us Sat, 22 Aug 2026 10:33:32 +0530 Sat, 22 Aug 2026 10:33:32 +0530 TaxTMI RSS Generator Specificity of penalty charge is mandatory: notices retaining both section 271(1)(c) limbs cannot sustain penalty proceedings. https://www.taxtmi.com/highlights?id=102967 Penalty notices under section 271(1)(c) must clearly identify whether the charge concerns concealment of income or furnishing inaccurate particulars. The two limbs are independent and may require different explanations and treatment; therefore, a notice retaining both alternatives without specifying the applicable limb denies the assessee a proper opportunity to defend. Recording satisfaction to initiate penalty proceedings does not cure this defect. Applying this principle, the High Court treated the defective notice as invalid, upheld deletion of the penalty, and dismissed the revenue's appeal. Highlights Income Tax Sat, 22 Aug 2026 10:33:32 +0530 https://www.taxtmi.com/highlights?id=102967