Income Tax Act, 2025
Section 144: Best judgment assessment.—1[(1)] If any person—
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 sub-section (4) or sub-section (5) of that section, or
(b) fails to comply with all the terms of a notice issued under sub-section (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 4[Assessing Officer] has
gathered, 5[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 assesse 6*** on the
basis of such assessment:
7[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.]
8[(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.]
9[144A. Power of 10[Joint Commissioner] to issue directions in certain cases.—11*** A 10[Joint
Commissioner] may, on his own motion or on a reference being made to him by the 4[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 4[Assessing Officer] to enable him to complete the assessment and such
directions shall be binding on the 4[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 12[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.
13* * * * *
1. Section 144 renumbered as sub-section (1) thereof by Act 36 of 1989, s. 17 (w.e.f. 11989).
2. Subs. by Act 4 of 1988, s. 49, for “by any notice given under sub-section (2) of section 139” (w.e.f. 11989).
fails to make the return required 2[under sub-section
of section 139] and has not made a
return or a revised return under sub-section
or sub-section
of that section, or
fails to comply with all the terms of a notice issued under sub-section
of section 142 3[or
fails to comply with a direction issued under sub-section
of that section], or
having made a return, fails to comply with all the terms of a notice issued under sub-section
of section 143,
the 4[Assessing Officer], after taking into account all relevant material which the 4[Assessing Officer] has
gathered, 5[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 assesse 6*** on the
basis of such assessment:
7[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
of section 142 has been issued prior to the making of an assessment under this section.]
8[
The provisions of this section as they stood immediately before their amendment by the Direct
Tax Laws
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.]
9[144A. Power of 10[Joint Commissioner] to issue directions in certain cases.—11*** A 10[Joint
Commissioner] may, on his own motion or on a reference being made to him by the 4[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 4[Assessing Officer] to enable him to complete the assessment and such
directions shall be binding on the 4[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 12[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.
13* * * * *
1. Section 144 renumbered as sub-section
thereof by Act 36 of 1989, s. 17 (w.e.f. 11989).
2. Subs. by Act 4 of 1988, s. 49, for “by any notice given under sub-section
of section 139” (w.e.f. 11989).