Noncompliance with statutory notices under section 142(1) and penalty under 272A upheld for lack of reasonable cause.

Assessee failed to comply with statutory notices under section 142(1) and did not respond to showcause proceedings related to penalty under section 272A(1)(d); absence of any explanation or evidence meant no establishment of reasonable cause under the statutory test, and therefore the appellate authority concurred with the lower officer that penalty was properly imposed. The decision emphasizes that where the assessee remains nonresponsive despite opportunities to be heard, lack of furnished cogent reasons or proof precludes relief from penalty, resulting in dismissal of the appellant's challenge.

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Issues: Whether the penalties imposed under section 272A(1)(d) of the Income-tax Act, 1961 for failure to comply with notices issued under section 142(1) are valid and sustainable in absence of any reasonable cause under section 273B, and whether the principles of natural justice were complied with.

Analysis: The Tribunal examined the factual record showing issuance and service of notices under section 142(1) and subsequent show-cause notices under section 274 read with section 272A(1)(d). The authorities below afforded opportunities of hearing, but the assessee remained absent and did not furnish any explanation or evidence before the Assessing Officer or the Commissioner (Appeals). Section 273B places the onus on the assessee to demonstrate reasonable cause to avoid levy of penalty; no such cause was produced. The Tribunal considered whether the requirements of natural justice were satisfied and found that opportunities were afforded but not availed by the assessee, and that the Commissioner (Appeals) and Assessing Officer recorded reasoned findings upholding the penalty.

Conclusion: The penalty imposed under section 272A(1)(d) is upheld; the assessee failed to show reasonable cause under section 273B and the penalty orders complied with principles of natural justice. The appeals are dismissed in respect of the penalty challenge.

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