2026 (7) TMI 885

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....of income, as no purchases were made from M/s Kumar Enterprises and the income was enhanced only to buy peace of mind, without any adverse finding; hence the penalty is bad in law. 2. That the penalty proceedings u/s 270A are mechanical and invalid as the Ld. AO failed to specify the applicable sub-clause of section 270A(9) either in the reassessment order or in the penalty notice, rendering the proceedings void ab initio. 3. That the Ld. AO erred in imposing penalty u/s 270A even though no addition or disallowance was made in the reassessment order and the returned income was accepted in full, thereby rendering the penalty as unjustified and unsustainable in law. 4. That the impugned penalty order u/s 270A had be....

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.... in toto without making any addition but mechanically initiated penalty proceedings u/s 270A by issuing notice u/s 270A alleging under-reporting of income in consequence of misreporting of income but no specific sub clause of section 270A(9) was either mentioned in the assessment order nor under the penalty notice issued u/s 270A. (Kindly refer to Page No. 48 for assessment order and Page No. 50 for notice issued u/s 270A.) 5. Since, when no specific clause of Section 270A(9) was mentioned either in assessment order, penalty notice no specific charge of defiance of law warranting imposition of penalty was framed against the appellant and as such the initiation of the penalty proceedings is void ab initio and not sustainable under t....

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....ner relates to the present ground (Ground No. 2) and such not contradicts the contention of vague notice u/s 270 and resultant vitiated initiation of penalty proceedings u/s 270A. Hence, in view of the above, the notice issued u/s 270A without specifying the limb or sub clause of section 270A(9) in the present case, is vague and invalid which rendered the initiation of the penalty proceedings as vitiated under the law, consequent to which the penalty order passed by the Ld. AO needs to be quashed." 3. Arguments of Ld. Counsel for the assessee were in the line the written submissions filed by him. 4. The Ld. Counsel for the assessee has filed an order of the coordinate Bench in the case of Smita Virendra Lodha in which the coo....