Section 115WF of Income Tax Act "Best judgment assessment"
115WF. If any person, being an employer-
(a) fails to make the return required under sub-section (1)
of section 115WD and has not made a return under sub-section
(3) or a revised return under sub-section (4) of that
section, or
(b) fails to comply with all the terms of a notice issued
under sub-section (2) of section 115WD or fails to comply
with a direction issued under sub-section (2A) of section
142, or
(c) having made a return, fails to comply with all the terms
of a notice issued under sub-section (2) of section 115WE,
the Assessing Officer, after taking into account all
relevant material which the Assessing Officer has gathered,
shall, after giving the assessee an opportunity of being
heard, make the assessment of the fringe benefits to the
best of his judgment and determine the sum payable by the
assessee on the basis of such assessment:
Provided that such opportunity shall be given by the
Assessing Officer 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:
Provided further that it shall not be necessary to give such
opportunity in a case where a notice under sub-section (2)
of section 115WD has been issued prior to the making of an
assessment under this section.
115WG. If the Assessing Officer has reason to believe
that any fringe benefits chargeable to tax have escaped
assessment for any assessment year, he may, subject to the
provisions of sections 115WH, 150 and 153, assess or
reassess such fringe benefits and also any other fringe
benefits chargeable to tax which have escaped assessment and
which come to his notice subsequently in the course of the
proceedings under this section, for the assessment year
concerned (hereafter referred to as the relevant assessment
year).
Explanation.-For the purposes of this section, the following
shall also be deemed to be cases where fringe benefits
chargeable to tax have escaped assessment, namely:-
(a) where no return of fringe benefits has been furnished by
the assessee;
(b) where a return of fringe benefits has been furnished by
the assessee but no assessment has been made and it is
noticed by the Assessing Officer that the assessee has
understated the value of fringe benefits in the return;
(c) where an assessment has been made, but the fringe
benefits chargeable to tax have been under-assessed.