Asst order passed in non filing case

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If an assessee fails to file income tax returns, a 'best judgement' assessment order may be issued. The assessee can potentially withdraw this order by filing a valid return with all due taxes within 30 days, though late fees, penalties, and interest will still apply. Alternatively, the assessee can file an appeal or revision under the relevant sections of the Income Tax Act.

mohamed ali & co

mohamed ali & co (Querist)
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07 February 2024 The assessee having turnover of Rs 1.50 crore but didn't file income returns for 19-20. Case taken for scrutiny in faceless assessment. The assessee did not respond neither filed the returns. Best judgement order passed. Now only the assessee wakes up and wants to file returns.
Can the experts advise how to face the situation please.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 February 2024 If the taxable person files a valid return within 30 days from the above assessment order, then the best judgement assessment order will be withdrawn. Valid return includes return along with payment of all due taxes. However, late fees, penalty, interest will still be payable in best judgement orders.

mohamed ali & co

mohamed ali & co (Querist)
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09 February 2024 As the return has not been filed I tried to file as original returns but system not allowing. Kindly give under which provision the ITR has to be filed.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 February 2024 Upon receiving best judgment assessment an assessee can file an appeal under Section 246A of the Act or can file a revision under Section 246 of the Act before the Income Tax Commissioner. An assessee gets an opportunity of being heard before the best judgment assessment is made.

mohamed ali & co

mohamed ali & co (Querist)
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10 February 2024 Can the assessee file a return of income now or only has the option of appeal or revision. Kindly clarify sir...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 February 2024 Not able to file ITR go for appeal.

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