TMI BlogAssessment of non-filers of returns Section 62X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order. Act provides for such an eventuality. Accordingly, if a registered taxable person fails to file the monthly or quarterly return under section 39 the final return under section 45 (in case of a person applying for cancellation) Even after a notice is served under section 46 . Action taken by Proper Officer In case of failure to furnish the return under Section 39 or Section 45 or section 46 within 15 days of the issue of such notice Assessment Order has to be issued within a period of 5 years from the due date of filing of annual return (specified under section 44) for the year to which return not filed relates. it means that if transaction of non filer pertain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .A. 2023 ) 60 days ( w.e.f. 01.10.2023 ) of service of Order, then Order shall be deemed to be withdrawn the liability for payment of interest or late fee continues. Levy additional late fee beyond the 60 days:- Where the registered person fails to furnish a valid return within 60 days of the service of the assessment order under section 62(1), he may furnish the same within a further period of sixty days on payment of an additional late fee of one hundred rupees for each day of delay beyond sixty days of the service of the said assessment order; and In case he furnishes valid return within such extended period the said assessment order shall be deemed to have been withdrawn, but the liability to pay interest under section 50 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, it shall not be a wild one but shall have a reasonable nexus to the available material and the circumstances of each case. The decision of Privy Council in CIT v. Laxminarayan Badridas (1937) 5 ITR 170 rendered on the provisions of the Indian Income-tax Act, 1922 is a classic one in which it was observed that the officer making best judgment assessment should not act dishonestly, vindictively or capriciously because he must exercise judgment in the matter. He must make what he honestly believes to be a fair estimate of the proper figure of assessment and for this purpose, he must take into account local knowledge and repute in regard to the taxpayer s circumstances and all other matters which he thinks will assist him in arriving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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