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TMI Blog2023 (12) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... ming the levy of penalty u/s 270A of the Income Tax Act, 1961 in the sum of Rs. 72,99,406/- in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. We find that the assessee being a charitable trust enjoying registration u/s 12AA of the Act consequentially eligible for exemption u/s 11 of the Act had claimed disallowance of depreciation on certain fixed assets as an application of income, ignoring the amendment brought u/s 11(6) of the Act w.e.f. 01.04.2015. This disallowance of deprecation was accepted by the assessee in the quantum proceedings. The ld. AO initiated penalty proceedings u/s 270A of the Act on 01.11.2019 wherein in the said notice issued u/s 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or requirement for a communication to be valid communication is fatal, with no further proof. That said, even if the notice contains no caveat that the inapplicable portion be deleted, it is in the interest of fairness and justice that the notice must be precise. It should give no room for ambiguity. Therefore, Dilip N. Shroff Case (supra) disapproves of the routine, ritualistic practice of issuing omnibus show-cause notices. That practice certainly betrays non- application of mind. And, therefore, the infraction of a mandatory procedure leading to penal consequences assumes or implies prejudice. 189. In Sudhir Kumar Singh, the Supreme Court has encapsulated the principles of prejudice. One of the principles is that "where procedural and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference as required by us; so we direct the Registry to place these two Tax Appeals before the Division Bench concerned for further adjudication." 4. Further, we also find that different rates of penalty are stipulated in Section 270A of the Act for underreporting of income; for misreporting of income and for underreporting as well as misreporting of income. Hence, it is even more onerous on the part of the ld. AO to specifically mention the offence committed by the assessee whether it had underreported the income or misreported the income or committed both the offence so as to apply the respective penalty amounts as stipulated u/s 270A of the Act. This onerous task being not fulfilled by the ld. AO would result in entire penalty proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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