What is the best Judgement assessment under section 144?

Asked by: Madonna Rodriguez | Last update: February 25, 2026

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The "best judgment assessment" under Section 144 of India's Income Tax Act is a discretionary assessment by the tax officer when a taxpayer fails to file returns, doesn't respond to notices, or provides incomplete/inaccurate information, allowing the officer to estimate income based on available data, but requiring a chance for the taxpayer to be heard before finalization. It's not about a specific "best" method but rather a process to prevent tax evasion by using the officer's best judgment when compliance fails, often resulting in a higher estimated liability.

What is the concept of best Judgement assessment under section 144?

Section 144 of the Income Tax Act deals with what is known as a best judgment assessment. This happens when the taxpayer does not cooperate with the income tax department—either by not filing a return, ignoring notices, or failing to keep proper books of accounts.

What is the best of Judgement assessment?

The Best of Judgment (BOJ) assessment has long served as a critical instrument in Nigeria's tax administration. It enables tax authorities to estimate a taxpayer's liability when reliable financial records or accounting information are unavailable or insufficient.

What is the best Judgement assessment notice?

Notice Under Section 144 Of Income Tax Act

The assessing officer must issue notice to the taxpayer before implementing such a judgement. The AO can issue notices as per Section 142(1) by asking the taxpayer to file an income tax return if he still hasn't filed the same.

What is best Judgement assessment in GST?

What is best-judgment assessment under GST? Best-judgment assessment is the assessment of non-filers of returns. Non-filers of returns are those registered taxable persons who fail to furnish the monthly return under section 39 or final return under section 45, ever after the service of a notice under section 46.

Best Judgement Assessment | Section 144 | by CA Kushal Soni

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What is the time limit for best Judgement assessment in GST?

The officer will assess the tax liability for relevant tax periods to the best of his judgement. He can issue assessment order within 5 years from the due date of the annual return for the year when the tax was not paid.

What are the two types of assessment in GST?

As per section 2(11) of the GST ACT the term “assessment means determination of tax liabilities under this act and includes self-assessment, re-assessment, provisional assessment, summary assessment and best judgment assessment.

How to avoid getting a GST notice?

✅ The Good News: You Can Prevent GST Notices

Reconcile data before every filing cycle.
Match GSTR-1, 3B, and 2B accurately.
Avoid high-risk ITC claims and unverified invoices.
Use proper HSN/SAC codes for every transaction.
Respond promptly and correctly to notices, if any.

How to win a property assessment appeal?

To win a property assessment appeal, gather strong evidence like recent sales of comparable homes, document your property's defects with photos and repair estimates, and highlight any factual errors in the assessor's records (e.g., square footage). Present a calm, factual case, ideally in person, focusing on data that shows your property is overvalued compared to similar homes or its actual condition, and ensure you meet all local filing deadlines.

What is the penalty for GST assessment?

Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.

What are the remedies available against best judgement assessment?

Options available to an assessee after receiving best judgment assessment: Upon receiving best judgment assessment an assessee can file an appeal under Section 246A of the Act or can file a revision under Section 246 of the Act before the Income Tax Commissioner.

How many years can IRS go back for unpaid taxes?

The IRS generally has 10 years from the assessment date (Collection Statute Expiration Date or CSED) to collect back taxes, but this period can be paused or extended (tolled) by actions like bankruptcy, entering installment agreements, Offers in Compromise, Collection Due Process hearings, or if the taxpayer lives abroad, meaning some debts can be collected for much longer, potentially over a decade. Exceptions like tax fraud can eliminate the time limit entirely.

What is the meaning of Boj in tax?

The FIRS argued that it has the power under the section to employ a best of judgement (BOJ) assessment to determine a company's profits and assess the profits to tax.

What is the new law of Section 144?

Section 144 of the BNSS (which replaced Section 125 of the CrPC) focuses on providing maintenance to dependents, including wives, children, and parents, irrespective of their religious identity. The purpose of this section is to protect those unable to sustain themselves financially.

How can I avoid scrutiny assessments?

To avoid scrutiny, taxpayers must ensure consistency across all financial records and ITR data. Always verify that your income details match the figures in AIS, TIS, and Form 26AS before filing. Report all income sources, including savings account interest and dividends, and maintain proofs for every deduction claimed.

What is the meaning of Section 144?

Section 144 of CrPC is an unsolicited accord by the colonial rulers to the Indian administrations. It grants the power to a magistrate of any sort to issue the order in urgent cases of nuisance or apprehended danger.

What is the best evidence to protest property taxes?

The best evidence to protest property taxes includes comparable sales data (comps) of similar homes, photos and contractor estimates of physical defects/deferred maintenance, and your own independent appraisal, all used to argue for a lower market value or unequal appraisal compared to neighbors, focusing on recent sales near January 1st and highlighting your property's specific condition issues.

How to win a property dispute?

Bring in an Attorney

The first step for a lawyer is usually to send a letter to the other neighbor to request action or to make a sensible settlement offer. If exchanging attorneys' letters doesn't resolve the dispute, it may be time to file an official complaint in court so that all the evidence can be examined.

How often are property tax appeals successful?

Property tax appeals are often successful, with success rates typically ranging from 30% to over 50%, depending heavily on location and the strength of your case, with successful appeals often resulting in 10-15% reductions in assessed value; while many homeowners win, few actually appeal, creating a significant opportunity for savings if you have strong evidence like comparable sales.

How to resolve GST notice?

Reply on Show Cause Notice Under Section 130 issued by tax officer

Access the www.gst.gov.in URL. ...
Login to the portal with valid credentials.
Dashboard page is displayed. ...
Additional Notices and Orders page is displayed. ...
Click on Click here hyperlink under Reply column to reply to the notice.

How to escape from GST?

Misclassification of Goods and Services To take advantage of lower tax rates, businesses misclassify high-tax goods and services under lower tax categories. Tax Evasion through E-Commerce Some online sellers evade GST by not reporting their actual sales, using multiple registrations, or mis declaring transactions.

How to get GST waived off?

Steps to Apply for the GST Waiver

Here's a simplified breakdown of the process under Section 128A: File an Application on the GST Portal: Apply electronically using FORM GST SPL-01 for non-fraudulent notices or FORM GST SPL-02 for certain orders. Include details of the tax payments made using FORM GST DRC-03.

What is the time limit of assessment under GST?

Thus, a Provisional assessment can remain provisional for a period of maximum of 5 years. The registered Person shall be liable to pay interest on so much of the amount of tax payable on provisional basis which remains unpaid on the date of payment of taxes under section 60(4) of the act.

What are the 4 types of GST?

Types of GST in India

CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)

What is the difference between assessment and adjudication under GST?

Meaning of Assessment

Such assessments are subject to adjudication procedure which involves observance of principles of natural justice. The person who is assessed is called assessee (i.e. taxable person) and the person who assesses is called adjudicating authority.