What should I do when I receive an income tax scrutiny notice?

Do not ignore any income tax notice. First identify the section under which it is issued — Section 143(2) for scrutiny, Section 148 for reassessment, Section 139(9) for defective return. Note the response deadline carefully. Engage a CA immediately to review the notice, gather supporting documents, and draft a factual, legally sound reply through the Compliance Portal on the e-filing website.

What is the difference between Section 143(2) and Section 148 notice?

Section 143(2) of the Income Tax Act is issued for scrutiny assessment — the assessing officer examines your return in detail and may ask for documents. Section 148 is issued for reassessment when the AO has reason to believe income has escaped assessment. Section 148 notices must now be preceded by a Section 148A show-cause notice giving the taxpayer an opportunity to be heard.

How long do I have to reply to an income tax notice?

The response deadline varies by notice type. Section 143(2) scrutiny notices typically require a response within 15–30 days. Section 148A show-cause notices must be replied to within the time specified (usually 30 days). CPC demand notices under Section 156 must be paid or disputed within 30 days of service. Always check the specific deadline on your notice.

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Income Tax Notice Reply & Representation

Received an income tax notice? Whether it is a simple CPC intimation, a Section 143(2) scrutiny notice, a Section 148 reassessment, or a penalty notice — our CA and legal team will draft a legally precise, document-backed response and represent you before the department.

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Our Services

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Section 143(1) CPC Intimation

Demand notices from CPC after return processing — TDS mismatch, disallowed deductions, tax computation differences. We review the intimation, identify the correct position, and file rectification or response as applicable.

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Section 143(2) Scrutiny Notice

Full assistance with Faceless Assessment proceedings — organising all supporting documents, drafting submission, filing on the portal, and attending virtual hearings to present your case comprehensively.

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Section 148 / 148A Reassessment

Response to notices for income escaping assessment. Analysis of the department's basis for reopening, filing of objections under Section 148A(b), and full reassessment proceedings if the notice is confirmed.

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Section 156 Demand Notice

Payment of demand or filing of stay application before the Assessing Officer. Analysis of whether the demand is correct, rectification if erroneous, and stay of demand pending appeal if disputed.

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Penalty Notices — Section 270A / 271

Response to penalty notices for under-reporting, misreporting of income. Penalty proceedings under the new Income Tax Act 2025 handled with detailed submissions and relevant judicial precedents.

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Appeal Before CIT(A) — Faceless

Drafting and filing of appeal before the Commissioner (Appeals) under the Faceless Appeals Scheme. Grounds of appeal, statement of facts, and written submissions prepared by our CA and legal team.

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ITAT — Income Tax Appellate Tribunal

Appeals before the ITAT handled by Adv. (CA) Kanishk Rana — Advocate on Record, Supreme Court of India — with extensive appellate experience including matters from Luthra & Luthra and AZB & Partners.

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Voluntary Disclosure & Settlement

Identification and voluntary disclosure of income not reported in earlier years through the Updated Return (Section 139(8A)) mechanism, reducing penalty exposure while staying compliant.

How We Work

Simple Process

Notice Review

We review the notice, identify the type, assess the risk, and advise on the correct response strategy within 24 hours.

Document Organisation

We identify all documents needed to support your position — bank statements, contracts, investment proofs, prior correspondence.

Response Drafting

Legally precise submission drafted with relevant case laws, circular references, and supporting documents.

Filing & Submission

Response filed on the income tax portal within prescribed timelines. Acknowledgement preserved.

Follow-Up & Order

We monitor the proceedings, respond to follow-up queries, and review the assessment order on receipt.

Common Questions

Frequently Asked Questions

A Section 143(2) notice initiates scrutiny assessment — the department wants to examine your return in detail. It does not mean you have done anything wrong, but it requires a careful, document-backed response. The response must be filed through the Faceless Assessment portal within the time specified in the notice (usually 15–30 days). Ignoring or inadequately responding to a Section 143(2) notice leads to an ex-parte assessment order which is almost always unfavourable. Engage a CA or tax professional immediately upon receipt.

The Faceless Assessment Scheme (effective from 2020) means your assessment is conducted electronically without you or your CA appearing in person before any tax officer. All submissions, queries, and orders happen through the income tax e-filing portal. Similarly, appeals under the Faceless Appeals Scheme are filed on the portal without physical hearings. The scheme aims to eliminate jurisdictional bias but requires that all documentary evidence be properly organised and submitted digitally.

A Section 148A notice is a show-cause notice issued before reopening an assessment for income that has allegedly escaped assessment. You have the right to file a reply objecting to the reopening under Section 148A(b). The Assessing Officer must consider your objections before deciding whether to proceed with reassessment. This reply is critical — a well-argued reply that demonstrates the income was already disclosed or not taxable can prevent reopening entirely. Do not ignore or submit a casual reply.

Yes. If you have filed an appeal against a tax demand before CIT(A) or ITAT, you can apply for a stay of demand before the Assessing Officer or the appellate authority. The standard practice is to pay 20% of the disputed demand and apply for stay of the balance pending the appeal. In cases of genuine hardship, the AO has discretion to grant a stay on payment of a lesser amount. Our team handles stay applications alongside appeal filing.

A scrutiny assessment must be completed within 9 months from the end of the financial year in which the notice under Section 143(2) was served (under the Income Tax Act 2025 timelines). However, in practice, with multiple rounds of queries and submissions, assessments often proceed close to the time limit. Assessments involving international transactions or search proceedings have extended timelines. We monitor deadlines closely to ensure all submissions are filed within time.

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Complete Guide

How to Handle an Income Tax Notice — Step by Step

Receiving an income tax notice can be stressful, but most notices are routine — they require either a factual response or additional documentation. The first step is identifying the type of notice: 143(1) is an intimation (usually a refund or demand), 143(2) is a scrutiny notice requiring detailed explanation of income and deductions, 148/148A is a reassessment notice for income allegedly escaped assessment, 139(9) flags a defective return, and 156 is a demand notice. Each requires a specific type of response within a defined time limit.

For Section 143(2) scrutiny notices, the officer selects specific items for examination — typically high-value cash deposits, large deductions, foreign income, or mismatches between Form 26AS/AIS and the ITR. The response requires compiling evidence: bank statements, loan documentation, sale deeds, capital gains calculations, investment proofs, and explanation of each item the officer has questioned. The entire scrutiny process is now conducted through the e-Assessment portal — responses are filed online, and hearings (if any) are held via video conference.

Section 148A is a pre-reassessment enquiry where the officer must give the taxpayer an opportunity to be heard before issuing a 148 notice to reopen a past assessment. The taxpayer must file a response to 148A within 15 days (extendable to 30 days), explaining why the case should not be reopened. A well-drafted response to a 148A notice can prevent the matter from escalating to full reassessment. Shahi & Co. has successfully resolved multiple 148A cases at the enquiry stage itself.

If you have received any income tax notice, share a copy with us immediately at info@shahiandco.in or WhatsApp +91-9999 361 351. CA Chandan Shahi will personally review the notice and advise on the best response strategy — most notices are resolved without any additional tax liability when handled promptly and correctly.

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Respond to Your Tax Notice Today

Share the notice with us. Our CA and legal team will review it, advise you on your position, and draft a legally precise response — typically within 48 hours.

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