Best judgment assessment under the Income-tax Act survives without section 143(2) notice when return is filed belatedly.

Non-issuance of notice under section 143(2) did not vitiate the assessment where no return was filed in time, repeated notices under section 142(1) were ignored, and the Assessing Officer lawfully completed a best judgment assessment under section 144. The belated return filed at the verge of limitation did not revive the scrutiny process or require a fresh notice under section 143(2), because scrutiny under that provision operates only after a valid return is taken up for examination. The assessment was therefore sustained and the assessee's challenge failed.

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Issues: (i) Whether non-issuance of notice under section 143(2) of the Income-tax Act, 1961 invalidated the assessment where no return was filed under section 139(1), notices under section 142(1) were issued, the return was filed only belatedly, and the Assessing Officer completed best judgment assessment under section 144.

Analysis: The assessment regime under sections 142(1), 143(2), 143(3), 144, and 153(1) was applied to hold that notice under section 143(2) serves the purpose of scrutiny only after a return is validly taken up for examination. On the facts, the assessee did not file a return within time, failed to comply with repeated notices, and the Assessing Officer proceeded with best judgment assessment before the belated return was furnished at the verge of limitation. The belated return was treated as lacking legal sanctity for that stage, and there was no requirement to issue notice under section 143(2) after the return had been rejected and the assessment had already been proceeded with under section 144.

Conclusion: Non-issuance of notice under section 143(2) did not invalidate the assessment; the issue was decided against the assessee.

Final Conclusion: The assessment made under the best judgment procedure was sustained and the appeal was dismissed.

Ratio Decidendi: Where the Assessing Officer, after repeated non-compliance and failure to file a return in time, lawfully proceeds to best judgment assessment under section 144, a subsequently filed belated return does not revive the scrutiny process or necessitate notice under section 143(2).

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