Section 271 & 274 of the Income-tax Act, 1961—Penalty—Notice imposing penalty set aside as neither the show-cause notice nor the order of the Commissioner specified which particular clause of Rule 173-Q had been allegedly contravened by the assessee.

Facts: The Revenue has preferred an appeal from the order of the Tribunal setting aside the imposition of penalty under Rule 173-Q of the Central Excise Rules, 1944 on the ground that neither the show-cause notice nor the order of the Commissioner specified which particular clause of Rule 173-Q had been allegedly contravened by the assessee.

Held, that finding of the Tribunal is correct. Rule 173-Q contains six clauses, the contents of which are not same. It was, therefore, necessary for the assessee to be put on notice as to the exact nature of contravention for which the assessee was liable under the provisions of Rule 173-Q. This not having been done,the Tribunal's finding cannot be faulted. - PR. CIT V/s BASANTI PROPERTIES (P.) LTD. - [2019] 10 ITCD Online 77 (CAL)