Sufficient cause for non-compliance with tax notices rejected where the assessee failed to substantiate ignorance of portal access details.

An assessee's failure to comply with notices under section 142(1) was not excused where the explanation that a former tax consultant had entered his own contact details on the portal was unsupported by documentary evidence. The Tribunal noted that access to the income-tax portal would ordinarily involve the assessee's details and found the plea of ignorance unacceptable on the facts. As no sufficient cause was shown for the default, the penalty under section 271(1)(b) was upheld and the challenge to the levy was rejected.

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Issues: Whether the assessee had shown sufficient cause for non-compliance with notices issued under section 142(1) so as to justify deletion of penalty imposed under section 271(1)(b).

Analysis: The assessee admitted non-compliance with the notices and relied on the plea that the former tax consultant had entered his own contact details on the portal. No documentary material was produced to show that this was done without the assessee's knowledge. The Tribunal held that access to the income-tax portal would ordinarily require the assessee's details and, on the facts, the plea of ignorance was not acceptable. No sufficient cause for the default was established.

Conclusion: The penalty under section 271(1)(b) was upheld and the ground challenging the levy was rejected.

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