Answer

1. F

   Facts

   A penalty notice should tell you the specific charge so you can answer it. Tribunals and courts have treated vague notices, which do not specify the limb, as a defect in several cases. The facts of each case matter.

2. P

   Provisions and law

   • Sec 274 (now Sec 471)No penalty without giving the person a reasonable opportunity of being heard
   • Sec 270A (now Sec 439)Penalty of 50% of tax on under-reported income, or 200% where under-reporting is due to misreporting
3. A

   Analysis

   Raise the point clearly in your reply: the notice does not specify the charge, so you cannot meet it. Still answer on merits, because the officer may proceed. If a penalty is levied, take this ground in appeal along with the merits. Do not rely only on the technical point if the addition itself is weak.

4. C

   Conclusion

   1. 1Check whether the notice and the order name a specific limb
   2. 2Raise the defect in your reply
   3. 3Answer on merits as well
   4. 4Keep the point as a ground of appeal if penalty is levied

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.