1972 (11) TMI 18 - HC - Income Tax

Best Judgment Assessment - Whether, on the facts and in the circumstances of the case, it has been rightly held that no notice under section 142(1) was necessary to complete the assessment tinder section 144 ? It is relevant to state that it is not the argument of Sri Albal that clauses (a), (b) and (c) of section 144 are not alternative conditions, but cumulative. In our opinion, the Tribunal was right in the view it has taken that notice under section 142(1) of the Act was discretionary and the non-issue of a notice under the said sub-section does not render the Income-tax Officer incompetent to make an order under section 144 of the Act.

Summary

The High Court of Karnataka ruled that a notice under section 142(1) was not necessary to complete the assessment under section 144 of the Income-tax Act, 1961. The conditions for a best judgment assessment under section 144 are alternative, not cumulative. The court held that the notice under section 142(1) is discretionary, and its absence does not affect the Income-tax Officer's authority to make an order under section 144. The question was answered in favor of the department, and the assessee was directed to pay costs.