Allowing the assessee the Tribunal held that ; the word used in the notice for linking the two portions was “or” and not “and”. An assessee has every right to know which default he had to explain. If it was both it was necessary to mention so in the notice. Without knowing what was the default for which he was being charged, an assessee cannot give an explanation. Accordingly the notice issued under S 274 read with S. 271 was held to be not valid. ( AY.2010-11)
Bank of Ceylon. v. DCIT (2018) 65 ITR 83 (SN) (Chennnai ) (Trib)
S. 271(1)(c) : Penalty – Concealment – Inaccurate particulars – Show cause should mention specific charge – Word used in notice “or” and not “and” — Levy of penalty is held to be not valid [S.274 ]