Section 144 – Best Judgment Assessment Under the Income Tax Act
A Best Judgment Assessment under Section 144 of the Income Tax Act is carried out when the Income Tax Department completes an assessment without the taxpayer’s cooperation or response. This usually happens when notices are ignored or statutory requirements are not complied with.
A Section 144 order often results in higher tax liability, disallowed deductions, and penalties, since the assessment is based on the Assessing Officer’s judgment rather than your actual explanations.
At N D Savla & Associates, we help taxpayers prevent best judgment assessments and represent them in cases where a Section 144 order has already been passed.
What Is a Best Judgment Assessment?
Section 144 empowers the Assessing Officer to complete an assessment based on available information when the taxpayer:
Fails to file a return of income
Does not comply with notices under Sections 142(1) or 143(2)
Does not produce required books, documents, or explanations
In such cases, the assessment is completed without considering the taxpayer’s side.
Why Section 144 Is Serious?
Best judgment assessments often lead to:
Inflated income estimation
Disallowance of genuine expenses and deductions
Higher tax demand and interest
Penalties for non-compliance
Further litigation and recovery proceedings
Once an order is passed, correcting it becomes more complex and time-consuming.
How We Assist in Section 144 Matters?
Prevention Strategy
We help ensure timely and proper compliance with income tax notices to avoid best judgment assessment altogether.
Review of Section 144 Order
If an order is already passed, we analyse its legal validity and factual accuracy.
Filing Submissions & Explanations
Where permissible, we assist in submitting pending information and seeking relief.
Rectification & Appeal Support
We handle rectification under Section 154 or appeals before the Commissioner of Income Tax (Appeals).
Representation Before Authorities
Professional handling of hearings, submissions, and follow-ups.
Common Situations Leading to Section 144
Ignoring Section 142(1) inquiry notices
Non-response to Section 143(2) scrutiny notices
Failure to file return despite reminders
Incomplete or delayed submission of information
Communication gaps during assessment proceedings
Most Section 144 cases arise due to delay—not intent.
Who We Assist?
We regularly assist:
Salaried individuals and professionals
Business owners and firms
Companies and startups
NRIs facing assessment issues
Taxpayers with legacy or high-demand cases
Why Choose N D Savla & Associates?
Experienced Chartered Accountants in assessment and litigation
Practical approach focused on damage control and resolution
Clear explanation of risks and remedies
Disciplined timelines and follow-through
Trusted CA firm serving clients across Mumbai and India
We help you regain control of the assessment.
Act Before or After a Section 144 Order
If you’ve received repeated notices—or already have a Section 144 order—early action can significantly reduce impact.
Get expert help to challenge or prevent a Best Judgment Assessment.
