If Assessee failes to co-operate with Assessing Officer, then AO is left with no option but to do assessment as per his best judgement. This is called Best judgement Assessment
It is done by A.O. in following cases
- Assessee fails to file return [u/s 139]
- Notice has been Served on Assesse to file ITR u/s 142 but he fails to do .
- Fails to comply with notice u/s 143 (2) Scrutiny Notice .
- AO has asked for Compulsory Audit of Accounts but he fails to do so .
In all these cases A.O. makes Assessment to the best of his judgement and determines tax payable, if any, by Assessee.