Sections of the Income-tax Act, 2025 are shown next to the 1961 Act sections.
When a taxpayer fails to file a return or respond to notices, the Assessing Officer can make a best judgment assessment under Section 144 (Section 271 of the 2025 Act). These orders often contain high estimated additions.
Income Tax, across India (faceless)
Overview
A best judgment assessment must still be fair and based on material. On appeal, additional evidence can be filed under Rule 46A, with reasons for not producing it earlier.
When this applies
- Non-filing of return after notice
- Non-compliance with 142(1) or 143(2) notices
- Failure to produce books
Time limit
Appeal before the Commissioner (Appeals) within 30 days of service of the notice of demand. Penalty for non-compliance may also be initiated.
Documents needed
- Assessment order and demand notice
- All records not produced earlier
- Reasons for non-compliance (illness, notices not received, etc.)
How we handle it
- Analyse the order and the reasons for non-compliance
- File appeal with an application for additional evidence
- Seek stay of demand
- Represent in appeal hearings
Points to note
- Explain the reasons for earlier non-compliance with evidence
- Check whether notices were properly served
What usually comes next
- Appeal before Commissioner of Income Tax (Appeals)Filing the appeal with additional evidence
- Condonation of Delay in Filing Income Tax AppealIf the appeal time has passed
- Stay of Income Tax Demand During AppealStay of the demand raised
Frequently asked questions
Can an ex-parte assessment be reopened?
Remedies include appeal (with additional evidence) and, in some cases, revision u/s 2642025 Act: s. 378. The right route depends on the facts.
Official sources
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Authenticate a notice (DIN check)incometax.gov.inConfirm that a notice or order is genuine before replying
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.