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TMI Blog2024 (6) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. This is the case where the Ld. AO has not even mentioned the reason as to why they are invoking the penalty provisions. It is a settled law that a defect in the notice vitiates the entire proceedings. Therefore. we are of the considered view that since there is no proper notice stating whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income , we have no hesitation to come to a conclusion that since the notice itself is not valid, the penalty order passed on the basis of such invalid notice is void ab initio. Assessee appeal allowed. - Shri Duvvuru Rl Reddy, Hon ble Judicial Member And Shri S Balakrishnan, Hon ble Accountant Member For the Assessee : Sri GVN Hari, AR For the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. AO to re-compute the income @ 5% of the purchase price of the stock which was put to sale, net of all the deduction. With regard to addition made by the Ld. AO towards unexplained investment U/s. 69, the Ld. CIT(A) has upheld the decision of the Ld.AO. Thereafter, the Ld. AO issued a show cause penalty notice U/s. 274 r.w.s 271(1)(c) of the Act, dated 28/03/2014 which was served on the assessee on 7/4/2011 and the assessee has submitted his reply on 21/03/2018. However, the Ld. AO did not consider the explanation and submissions of the assessee and observed as under: Keeping in view the facts and circumstances of the case as discussed above and also the decision of the Ld. CIT(A), it is held that the addition made on account of estima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04/12/2023 which reads as under: The notice dated 28/03/2014 issued without mentioning the charge for the proposed penalty is invalid and is liable to be quashed as void ab initio . 4. At the outset, the Ld. AR drawn our attention to the penalty notice issued U/s. 271(1)(c) of the Act and submitted that the Ld. AO did not mention the charge for the proposed penalty ie., whether it is for concealment of particulars of income or furnishing of inaccurate particulars of income which is required to be mentioned to decide the validity of the notice. Since the Ld. AO has not mentioned the reason in the notice issued U/s. 271(1)(c) as to why the penalty was being proposed to be imposed, the penalty notice itself is null and void and the penalty or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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