Reasonable cause for non-compliance with tax notices saved the assessee from penalty under section 272A(1)(d).

Reasonable cause for non-compliance with statutory income-tax notices was accepted where the assessee showed she was in her village in Gujarat without internet access, had no regular tax consultant monitoring the portal, and the notices were issued within a short span. Supported by affidavit and village particulars, this explanation was treated as sufficient to explain the default. On that basis, penalty under section 272A(1)(d) of the Income-tax Act, 1961 was held not sustainable and was directed to be deleted.

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Issues: Whether the assessee had reasonable cause for non-compliance with the statutory notices and, if so, whether penalty under section 272A(1)(d) of the Income-tax Act, 1961 was leviable.

Analysis: The assessee explained that during the period when the notices were issued she had gone to her village in Gujarat, where there was no internet facility, and that she did not have a regular tax consultant to monitor the notices on the portal. The notices were issued within a short span of time, and the explanation furnished was supported by affidavit and particulars of the village place.

Conclusion: The assessee established reasonable cause for the failure to comply with the notices, and the penalty under section 272A(1)(d) of the Income-tax Act, 1961 was not sustainable. The penalty was directed to be deleted.

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