Penalty Dismissed: Vague Notice Invalidates Proceedings in Copyright Sales Case; Assessee's Bona Fide Explanation Accepted.

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....The assessee challenged the penalty imposed u/s 271(1)(c) for short credit of sale consideration received from the sale of copyrights and cable rights. The issue centered around whether the penalty was levied for concealment of income or furnishing inaccurate particulars of income. The notice issued u/s 274 read with Section 271(1)(c) did not specify the nature of the default. Judicial precedents have held that when the charge is not clearly specified in the penalty notice, the penalty proceedings are rendered invalid. The Hon'ble Supreme Court and Karnataka High Court have ruled that vague notices u/s 274 render the penalty proceedings void ab initio. In the present case, the Assessing Officer failed to specify the exact charge, which is a.........