Assessment under section 153A/143(3) was completed by making certain additions which included addition on account of bogus purchases. On appeal, it was held that purchases as per seized material were unaccounted purchases made and used for unaccounted turnover either by way of trading or manufacturing, and accordingly addition was sustained. Assessing Officer issued notice calling upon assessee to explain why penalty under section 271(1)(c) shall not be levied. Assessee submitted that levy of penalty on basis of notice was vague and illegal and not justified as it did not specify whether penalty was for furnishing inaccurate particulars or concealed income. CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that  for Assessing Officer to assume jurisdiction under section 271(1)(c), proper notice is necessary and defect in notice under section 274 vitiates assumption of jurisdiction by Assessing Officer to levy any penalty. Penalty was deleted. (AY. 2011-12)