FCS Deepak Pratap Singh
Quick Summary
BEST JUDGEMENT ASSESSMENT UNDER THE INCOME TAX ACT, 1961 SECTION 139(1) requires that every person; Being a Company or a firm or; Being a person other than a Company or a firm if (i) his /her total income or (ii) the total income of any other person in respect of which he is assessable un
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FAQ :
Best Judgement Assessment, under Section 144 of the Income Tax Act, 1961, is a process where the Assessing Officer determines an assessee's total income or loss to the best of their judgment when the assessee fails to comply with certain provisions, such as filing returns or responding to notices.
An Assessing Officer can make a Best Judgement Assessment if a person fails to file a return under Section 139(1), a revised return under Section 139(4), or a belated return under Section 139(5). It can also be applied if the person fails to comply with notices issued under Section 142(1) or Section 143(2).
Yes, the assessee has the right to be heard. The assessment can only be made after giving the assessee an opportunity to show cause why the assessment should not be completed under Section 144.
No, an Assessing Officer cannot assess income under Section 144 for an assessment below the returned income or assess a loss higher than the returned loss.
If a Best Judgement Assessment is made without issuing a show-cause notice (except where a notice under Section 142(1) has been issued), the assessment is considered void-ab-initio, meaning it is invalid from the beginning.
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