Sufficient cause for non-compliance with tax notice was not made out where illness and prior conduct showed repeated default.

The note examines whether illness shortly before the hearing date constituted sufficient cause for failure to comply with a notice under section 143(2) and for cancellation of the assessment under section 146. It records that the assessee had time to contact the Assessing Officer and seek adjournment, and that the assessment history showed repeated non-compliance. On those facts, the illness was not treated as sufficient cause for non-attendance or non-response, and the rejection of the section 146 application was upheld.

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Issues: Whether the assessee was prevented by sufficient cause from complying with the notice issued under section 143(2) of the Income-tax Act, 1961 so as to justify cancellation of the assessment under section 146.

Analysis: The assessee had been ill shortly before the hearing date, but there was time available to communicate with the Assessing Officer and seek adjournment. The prior conduct in the assessment proceedings also showed repeated non-compliance. On these facts, the illness was not treated as a circumstance amounting to sufficient cause for failure to attend or respond to the notice.

Conclusion: The assessee was not prevented by sufficient cause from complying with the notice, and rejection of the application under section 146 was upheld.

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