Assessment Based On Best Judgement Basis , Non-Filing Of Returns After Receipt Of Order, Fatal For Assessee: Kerala High Court

In a recent decision, the Kerala High Court ruled that assessment based on best judgment due to non-filing of returns is detrimental to the assessee. The court emphasized that the Income Tax Act requires the Assessing Officer to make a best judgment assessment only after providing the assessee with reasonable opportunities to comply with filing requirements. Failure to file returns does not automatically justify a best judgment assessment without proper adherence to procedural fairness. This decision underscores the importance of procedural regularity and fairness in tax assessments.