Best judgment assessment allows action on alternative defaults; failure to issue notice under section 142(1) did not invalidate the assessment.

Best judgment assessment under section 144 of the Income-tax Act, 1961 is triggered by alternative statutory defaults, not cumulative conditions. The use of "or" in the provision means failure to comply with any one of the specified notices is sufficient to authorise assessment under section 144. Notice under section 142(1) is therefore not a universal precondition where the assessee has already failed to comply with notice under section 139(2). On that reasoning, absence of notice under section 142(1) did not invalidate the assessment, and the question was answered against the assessee.

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Issues: Whether an assessment could be validly completed under section 144 of the Income-tax Act, 1961 without service of notice under section 142(1), when the assessee had failed to comply with notice under section 139(2).

Analysis: The conditions for a best judgment assessment under section 144 are alternative and not cumulative. The presence of the word "or" between the clauses shows that failure to satisfy any one of the statutory conditions is sufficient to justify action under the provision. The corresponding provision in the earlier Act was section 23(4) of the Income-tax Act, 1922, and the same construction governs the 1961 Act. Notice under section 142(1) is not mandatory in every case, and non-issue of such notice does not disable the Income-tax Officer from making an assessment under section 144 where the assessee has already failed to comply with notice under section 139(2).

Conclusion: The absence of notice under section 142(1) did not invalidate the assessment under section 144. The question was answered in the affirmative and against the assessee.

Ratio Decidendi: The statutory conditions for best judgment assessment under section 144 of the Income-tax Act, 1961 are alternative, so compliance with notice under section 142(1) is not a universal precondition where another default attracting section 144 exists.

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