If Assessee failes to co-operate with Assessing Officer, then AO is left with no option but to do Â 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.