|Question And Answer|
|Subject:||Notice under sec 144 of IT Act (Best Judgment Assessement)|
|Answered by:||Advocate Shashi Ashok Bekal|
|Tags:||Best judgement assessment, Best Judgment Assessement, Reassessment notice|
|Date:||October 21, 2021|
whether notice under section 144 (Best Judgment Assessement) be issued for non response to notice under section 148 of IT Act.
As per first proviso to section 144(1) of the Income-tax Act, 1961 (Act), the Ld. Assessing Officer (AO) ought to issue a Notice giving the assessee an opportunity to show-cause as to why the assessment should not be done on the best judgement basis. The same is also envisaged under section 144B (1)(xi) of the Act.
However, empirically speaking, the Ld. AO will not immediately issue a Show-cause Notice after issuance of Notice under section 148 of the Act.
On not receiving a response to Notice under section 148 of the Act, the Ld. AO will proceed with assessment and issue Notices under section 143(2) and section 142(1) of the Act. Only when the assessee remains unresponsive to all notices, will the Ld. AO proceed with Best Judgement Assessment.
Reply to notice under section 142(1) was given but AO stated ,”In compliance of notice under section 142(1) of the Income Tax Act, 1961, the assessee filed
the requisitioned details and documents electronically. As assessee did not file return in response
to notice under section 148 of I.T. Act assessment is being completed under section 144 of I.T.
Act.” whether it can be as per law?