Best judgment assessment.
156. (1) The Assessing Officer shall make the assessment of the tax basis to the best of his judgment, if—
(a) the assessee fails to—
(i) furnish the return required under sub-section (1) of section 144 or section 146 or has not furnished a return or under sub-section (6) of section 144;
(ii) comply with all the terms of a notice issued under sub-section (2) of section 150;
(iii) comply with a direction issued under section 151; or (iv) furnish the return in response to notice under section 159; or
(b) the assessee fails to regularly follow the method of accounting provided in sub-section (1) of section 89, or the accounting standards notified under sub-section (2) of the that section; 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, as to why the assessment should not be completed to the best of his judgment.
(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 146 has been issued.
