Section 144 Best Judgment — challenge the ex-parte order.
A Best Judgment Assessment under Section 144 is made without the taxpayer’s input — and the resulting demand is often inflated. The right appeal can reverse it.
Contact UsA Best Judgment Assessment under Section 144 of the Income Tax Act, 1961 is an ex-parte assessment made by the Assessing Officer without the participation of the taxpayer. It arises when the taxpayer has failed to file a return despite directions, failed to comply with notices under Section 142(1), failed to comply with Section 143(2) notices, or failed to produce required books of accounts and documents.
The problem with Best Judgment Assessments is that they are invariably based on incomplete or adverse information. The AO may add income based on third-party data, bank credits, estimated business receipts, or the taxpayer’s assumed capacity — without hearing the taxpayer’s side of the story. The resulting demand can be dramatically higher than the actual tax liability.
A Best Judgment Assessment is fully appealable. An appeal before the Commissioner of Income Tax (Appeals) under Section 246A gives the taxpayer the opportunity to present their case for the first time — with full factual records, supporting documents, and legal submissions. In many cases, a well-argued CIT(A) appeal significantly reduces or eliminates the demand arising from the Section 144 order.
Our Section 144 Services
Show-Cause Response (Pre-Order)
Where the AO has issued a show-cause before making the Section 144 order, a structured response can prevent the ex-parte order from being passed.
Section 144 Order Analysis
Detailed review of the ex-parte assessment order to identify the basis of each addition and the grounds available for challenge.
CIT(A) Appeal Filing
Filing of an appeal before the Commissioner of Income Tax (Appeals) under Section 246A within 30 days of the assessment order.
Grounds of Appeal Drafting
Legally precise grounds of appeal challenging the validity of the Section 144 order and each specific addition made therein.
Written Submissions to CIT(A)
Comprehensive written submissions presenting the taxpayer’s factual case for the first time before the appellate authority.
Additional Evidence Filing
Filing of additional evidence under Rule 46A before the CIT(A) — presenting the books and documents the AO never received.
Stay of Demand
Immediate filing of a stay application to prevent coercive recovery of the demand raised in the Section 144 order.
ITAT Appeal (if needed)
Where the CIT(A) does not provide sufficient relief, escalation of the appeal before the ITAT with the full factual and legal record.
Our Process
Order Receipt & Analysis
Review of the Section 144 assessment order to identify every addition, the basis stated, and the strength of available grounds of challenge.
Stay of Demand
Immediate application for stay of demand before the AO to prevent coercive recovery while the appeal is being prepared and filed.
CIT(A) Appeal Filing
Filing of Form 35 with grounds of appeal within 30 days of the order, with a request for condonation if the deadline has already passed.
Evidence & Submission Preparation
Compilation of all available financial records, books, and documents, and preparation of comprehensive written submissions for the CIT(A).
CIT(A) Hearing & Order
Attendance at the CIT(A) hearing, presentation of the full factual case, and advice on ITAT appeal if the CIT(A) order is partly adverse.
Why It Matters
Frequently Asked Questions
Best Judgment Assessment received? Act immediately.
Stay of demand, CIT(A) appeal, Rule 46A evidence — we take on every step of the challenge so the ex-parte order does not become a permanent liability.
