2025 (3) TMI 229

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.... with Jas Sanghavi, Suyog Bhave i/b PDS Legal,. PC:- 1. Heard learned Counsel for the parties. 2. This Appeal concerns the Assessment year 2010-2011. 3. Mr Suresh Kumar, learned Counsel for the Appellant, proposes the following substantial questions of law:- "a) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was justified in upholding the o....

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....e penalty notice issued u/s 274 r.w.s 271 (1) (c) of the Act suffers from non- application of mind as the limb for initiation on the penalty has not been mentioned by the AO in the penalty notice, without appreciating that as per Provision of Section 292B of the Act, the notice will not be invalid merely by the reason of any defect or omission in the notice if the notice is in substance and effect....

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....ions in paragraph Nos. 180 to 183 of its decision. These observations read as follows: - "....180. One course of action before us is curing a defect in the notice by referring to the assessment order, which may or may not contain reasons for the penalty proceedings. The other course of action is the prevention of defect in the notice-and that prevention takes just a tick mark. Prudence de....

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....or can each cure the other's defect. A penalty proceeding is a corollary; nevertheless, it must stand on its own. These proceedings culminate under a different statutory scheme that remains distinct from the assessment proceedings. Therefore, the assessee must be informed of the grounds of the penalty proceedings only through statutory notice. An omnibus notice suffers from the vice of vaguene....