Direct Answer:
Yes, a "Take That!" card can be played on top of another "Take That!" card. A "Bomb" card can also be used to defend against a "Take That!" card. Relevant rules snippet:
Take That Card - When this card is played, the next player going clockwise must take the entire discard pile and place it in their hand! However, you can defend against this! If you also have a Take That Card you can play it and force the next player going clockwise to take the discard pile. If playing with two players, you send the discard pile back to the player. A Bomb Card can also be used to obliterate the discard pile during a Take That and no one has to take the discard pile; it is placed to the side.
Full Rules: