Best judgement assessment
163. (1) The Assessing Officer shall make the assessment of the tax base to the best of his judgement, if-
(a) the assessee fails to,-
(i) comply with all the terms of a notice issued under sub-section (1) of section 157;
(ii) comply with a direction issued under section 158;or
(iii) make the return in response to notice under section 166;or
(b) the assessee fails to regularly follow the method of accounting provided in sub-section (1), or the accounting standards notified under sub-section (2), of section 85;or
(c) he is not satisfied about the correctness or completeness of the accounts of the assessee.
(2) The Assessing Officer shall, in making the assessment under sub-section (1), take into account all relevant material which he has gathered or is available on record.
(3) The Assessing Officer shall, before making the assessment under sub-section (1), provide the assessee an opportunity of being heard by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgement.
(4) It shall not be necessary to give an opportunity under sub-section (3) before the making of an assessment under this section, in a case where a notice under section 157 has been issued.
