Penalty for non-compliance with tax notices upheld where no sufficient cause was shown for ignoring statutory notices.

Penalty exposure under section 271(1)(b) arose from failure to comply with notices under section 142(1) and the show-cause notice under section 144. The assessee offered only that the notices were received by an account clerk who did not place them before the officers, and no adjournment request or sufficient cause was shown. That explanation was found inadequate, and the non-compliance was treated as voluntary, so the penalty was upheld.

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Issues: Whether the penalty under section 271(1)(b) of the Income-tax Act, 1961 was justified where the assessee failed to comply with notices under section 142(1) and the show-cause notice under section 144 of the Income-tax Act, 1961, without showing sufficient cause.

Analysis: The assessee did not comply with the notices issued by the Assessing Officer and no adjournment request was filed. The only explanation offered was that the notices were received by an account clerk who did not bring them to the notice of the officers. The explanation was found insufficient, and the non-compliance was treated as voluntary.

Conclusion: The penalty under section 271(1)(b) was upheld. The decision was against the assessee and in favour of the Revenue.

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