Assessment
Section 144 Best Judgment Assessment — Assessment Without Your Participation
Section 144 allows the AO to complete assessment to the best of their judgment when the taxpayer fails to file a return or comply with notices under Sections 142(1) or 143(2).
Response Deadline
30 days from order to file appeal
Extension
Possible
New IT Act
Section 144
What Does This Notice Mean?
The AO has assessed your income without your participation because you did not comply with notices. The assessment is typically unfavorable since the AO estimates income based on available information. You can still appeal this order.
Common Triggers
- Failure to file return of income despite notice under 142(1)
- Non-compliance with notices during assessment proceedings
- Failure to attend hearings without adjournment
How to Respond
- 1File an immediate appeal to CIT(Appeals) under Section 246A within 30 days
- 2Prepare all the evidence you should have submitted during assessment
- 3In the appeal, explain the reasons for non-compliance
- 4Request CIT(A) to admit additional evidence under Rule 46A
- 5Apply for stay of demand if the amount is substantial
Consequences of Non-Compliance
The AO estimates income generously (from the department's perspective). The demand is usually much higher than what a proper assessment would yield. Penalty under Section 271(1)(b) for non-compliance is also levied.
Frequently Asked Questions
Can I appeal a best judgment assessment under Section 144?
Yes. File an appeal to CIT(Appeals) under Section 246A within 30 days. You can submit all evidence at the appeal stage. CIT(A) has the power to admit additional evidence under Rule 46A.
Related Sections
Received a Section 144 Notice?
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Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice. Always consult a qualified Chartered Accountant or tax professional for advice specific to your situation. AI-generated content should be reviewed by a professional before use.