Income-tax Act,1961
Act No : 43
Section :
Best judgment assessment
144. Best judgment assessment 1[(1)] If any person- (a) fails to make the return required 2[under sub-section (1) of section 139] and has not made a return or a revised return under subsection (4) or sub-section (5) of that section,] or (b) fails to comply with all the terms of a notice issued under subsection (1) of section 142 3[or fails to comply with a direction issued under sub-section (2A) of that section], or (c) having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of section 143, the 4[Assessing] Officer, after taking into account all relevant material which the 5[Assessing] Officer has gathered, 6[shall, after giving the assessee an opportunity of being heard, make the assessment] of the total income or loss to the best of his judgment and determine the sum payable by the assessee 7[* * *] on the basis of such assessment: 8[Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgment: Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub-section (1) of section 142 has been issued prior to the making of an assessment under this section.] 9[(2) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.] 10[144A. Power of 11[Deputy] Commissioner to issue directions in certain cases 12[* * *] A 13[Deputy] Commissioner may, on his own motion or on a ------------------------------------------------------------------------ 1 Renumbered by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989. 2 Substituted for by any notice given under sub-section (2) of section 139" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4- 1989. 3 Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4- 1976. 4 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 5 ibid. 6 Substituted for "shall make the assessment", ibid, w.e.f. 1-4- 1989. 7 The words "or refundable to the assessee" omitted, ibid. 8 Inserted, ibid. 9 Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989. 10 Inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-1- 1976. 11 Substituted for "Inspecting Assistant" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 12 "(1)" omitted, ibid, w.e.f. 1-4-1989. 13 Substituted for "Inspecting Assistant" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, ------------------------------------------------------------------------ 1.544 reference being made to him by the 1[Assessing] Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may issue such directions as he thinks fit for the guidance of the 2[Assessing] Officer to enable him to complete the assessment and such directions shall be binding on the 3[Assessing] Officer: Provided that no directions which are prejudicial to the assessee shall be issued before an opportunity is given to the assessee to be heard. Explanation.-For the purposes of this 4[section] no direction as to the lines on which an investigation connected with the assessment should be made, shall be deemed to be a direction prejudicial to the assessee. 5[(2) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]] 6[144B. Reference to Deputy Commissioner in certain cases.-Omitted ---------------------------------------------------------------------- 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 2 Ibid. 3 Ibid. 4 Substituted for "sub-section" by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 5 Prior to the omission, sub-section (2) read as under: "(2) The provisions of this section shall be in addition to, and not in derogation of, the provisions contained in sub-section (3) of section 119." 6 Prior to the omission, section 144B, as amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: "144B. Reference to Deputy Commissioner in certain cases.-(1) Notwithstanding anything contained in this Act, where in an assessment to be made under sub-section (3) of section 143, the Assessing Officer proposes to make, before the 1st day of October, 1984, any variation in the income or loss returned which is prejudicial to the assessee and the amount of such variation exceeds the amount fixed by the Board under subsection (6), the Assessing Officer shall, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the assessee. (2) On receipt of the draft order, the assessee may forward his objections, if any, to such variation to the Assessing Officer within seven days of the receipt by him of the draft order or within such further period not exceeding fifteen days as the Assessing Officer may allow on an application made to him in this behalf. (3) If no objections are received within the period or the extended period aforesaid, or the assessee intimates to the Assessing Officer the acceptance of the variation, the Assessing Officer shall complete the assessment on the basis of the draft order. (4) If any objections are received the Assessing Officer shall forward the draft order together with the objections to the Deputy Commissioner and the Deputy Commissioner shall, after considering the draft order and the objections and after going through (wherever necessary) the records relating to the draft order, issue, in respect of the matters covered by the objections, such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment: Provided that no directions which are prejudicial to the assessee shall be issued under this sub-section before an opportunity is given to the assessee to be heard. (5) Every direction issued by the Deputy Commissioner under sub- section -> -> ----------------------------------------------------------------------- 1.545 by the Direct Tax Laws Amendment) Act, 1987, w.e.f. 1-4-1989. It was inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.]
Read All Comments
