JUDGMENT :

1. Heard Smt. Smita Das De, learned senior standing counsel for the appellant/revenue and Mr. Abhratosh Majumder, learned senior advocate assisted by Mr. AvraMazumder, learned counsel for the respondent/assessee.

2. The present appeal relates to penalty under section 271(1)(c) of the INCOME TAX ACT , 1961 (hereinafter referred to as the said ‘Act, 1961’) relating to assessment years 2006-07 and 2007-08.

3. This appeal was admitted by this Court by order dated 14th May, 2018 on the following substantial question of law :

“Whether the penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961 are invalid if the show-cause notice does not specifically spell out the grounds for imposition of the proposed penalty?”.

Facts

4. Briefly stated facts of the present case are that a search was conducted by the income tax department on 23.11.2007 under Section 132 (1) of the Act, 1961 against various persons and business concerns of “Thakur Prasad Sao Group of Chaibasa” at different locations of Chaibasa and Kolkata. A survey was conducted under section 133A of the Act was carried out simultaneously at different places of the Group at Joda (Orissa), Rourkela, Jamshedpur