Penalty for Non Compliance with Notice: upheld where assessee failed to prove bona fide reasonable cause, so penalties sustained.

Penalty for Non Compliance with Notice: upheld where assessee failed to prove bona fide reasonable cause, so penalties sustained. https://www.taxtmi.com/highlights?id=97823 Issue: imposition of penalty under section 271(1)(b) for failure to comply with notices under section 142(1). Principle applied: the onus lies on the assessee to show bona fide and reasonable cause and to disclose material facts; Revenue need not prove deliberate default. Outcome: where the assessee offered no substantiated explanation and assessment proceeded ex parte, subsequent belated compliance did not negate penalty. The ITAT upheld two penalties for separate non compliance occasions and dismissed the appeal for failure to prove reasonable cause. en-us Wed, 18 Mar 2026 08:21:00 +0530 Wed, 18 Mar 2026 08:21:00 +0530 TaxTMI RSS Generator Penalty for Non Compliance with Notice: upheld where assessee failed to prove bona fide reasonable cause, so penalties sustained. https://www.taxtmi.com/highlights?id=97823 Issue: imposition of penalty under section 271(1)(b) for failure to comply with notices under section 142(1). Principle applied: the onus lies on the assessee to show bona fide and reasonable cause and to disclose material facts; Revenue need not prove deliberate default. Outcome: where the assessee offered no substantiated explanation and assessment proceeded ex parte, subsequent belated compliance did not negate penalty. The ITAT upheld two penalties for separate non compliance occasions and dismissed the appeal for failure to prove reasonable cause. Highlights Income Tax Wed, 18 Mar 2026 08:21:00 +0530 https://www.taxtmi.com/highlights?id=97823