best judgement assesment

This query is : Resolved

sherin (Querist)
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14 May 2008 As per Sec145(3) on Income Tax Act, if AO is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the MANNER provided in section 144. Is this means that in this case only best judgement assesment under Sec 144 will be done? In other words can best judgement assesment be done in cases other than specified in sec144?
Q2.Can refund be granted u/s 144. If yes, in what conditions?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 March 2012 In the MANNER provided u/s 144 means that the AO shall make the assessement to the best of his judgement, i.e., on an estimated basis.

It does not mean that the assessment order will be passed u/s 144.

The assessment order shall be passed under the Section under which the assessment was opened and assessment proceedings are underway.

If the assessment was opened u/s 143(3), the assessment order shall be passed under Section 143(3) by making an assessment to the best of his judgement.