(1) The Deputy Commissioner of Taxes may assess provisional tax on the total income of the assessee in any income year.

(2) Provisional assessment shall be made at the following times, namely:—

(a) where the return has been filed at any time during the relevant tax year; and

(b) where the return for the relevant tax year is not filed on the tax day or on any day preceding the tax day.

(3) The provisional assessment shall be prepared on the basis of the following matters, namely:—

(a) in the case referred to in clause (a) of sub-section (2), on the basis of the return and the accounts and documents, if any, therewith;

(b) in the case referred to in clause (b) of sub-section (2), on any readily available information or material and in the best judgment of the Deputy Commissioner of Taxes.

(4) In making a provisional assessment under this section, the Deputy Commissioner of Taxes may take the following proceedings, namely:—

(a) rectification of any arithmetical errors in the return, accounts and documents;

(b) adjustment and carry forward of any loss or carry forward of depreciation allowance under sections 70 and 71 on the basis of information obtained from returns, accounts and documents.

(5) For the purposes of payment and recovery, the tax as determined to be payable upon provisional assessment shall have effect as if it were determined upon regular assessment.

(6) In computing the tax payable under this section the following amounts shall be credited, namely:—

(a) any tax deducted or collected at source and paid to the Government; and

(b) any advance tax paid.

(7) Any amount paid or deemed to have been paid towards provisional assessment under this section shall be deemed to have been paid towards regular assessment; and the amount paid or deemed to have been paid towards provisional assessment in excess of the amount found payable after regular assessment shall be refunded to the assessee.

(8) Acts or aggravations or damages arising out of the assessment of any temporary tax under this section shall not override the measures taken for the settlement of any problem arising in the regular assessment thereof.

(9) There shall be no right of appeal against a provisional assessment under this section.