Non-compliance with tax notices can sustain concealment penalty when assessment is completed ex parte under section 144.

Persistent failure to file the return and to comply with assessment notices can support a concealment penalty where the assessment is completed ex parte under section 144. The Tribunal noted clear findings of non-compliance and lack of cooperation before the assessing authority and the first appellate authority, and found no basis to interfere with the penalty order. On that footing, the penalty under section 271(1)(c) was upheld.

---

---

Issues: Whether penalty under section 271(1)(c) was sustainable where the assessee failed to file the return and did not comply with notices, resulting in assessment under section 144.

Analysis: The assessee did not comply with the statutory obligations to file the return or respond to notices issued during assessment proceedings. The assessment was therefore completed ex parte under section 144, and both the Assessing Officer and the first appellate authority recorded clear findings of disregard of statutory notices and non-cooperation. In those circumstances, the Tribunal found no reason to interfere with the penalty order.

Conclusion: The penalty under section 271(1)(c) was upheld and the challenge to it failed.

Ratio Decidendi: Persistent non-compliance with statutory notices and failure to file the return can justify penalty for concealment where the assessment is completed ex parte on the basis of the assessee's default.

---