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Scrutiny Notice

u/s 143(2) / 142(1)

A scrutiny notice under Section 143(2) means the Income Tax Department has selected your return for detailed scrutiny. This typically happens when there are large deductions, high-value transactions, or discrepancies between your return and third-party data (like Form 26AS or AIS). You must respond within the time given or risk an ex-parte assessment.

⏱ 30 days to respond from date of notice

⚠️ Best assessment if no response; penalty up to 200% of tax in severe cases

Common Issues in This Type of Notice

Cash deposits

Unexplained investments

High value transactions

Mismatch with AIS/26AS

How We Handle It — Step by Step

Upload notice

Upload your 143(2) notice with all attachments

AI extraction

Our AI pulls out all sections, deadlines and risk points

Expert review

CA reviews your return, AIS and identifies discrepancies

Document gathering

Expert requests specific proofs to counter each query

Reply drafted

Formal reply drafted citing facts, law and case precedents

Submission

Reply submitted on ITD portal before deadline

Documents You Will Need

Income Tax Return (ITR) copy

Form 26AS / AIS Statement

Bank statements (all accounts)

Books of accounts

Supporting bills and invoices

Investment proofs

Relevant Case Laws & Precedents

CIT v. Sunrise Traders

ITAT Mumbai

Additions cannot be made without providing specific opportunity to rebut each query raised in scrutiny.

Phoolchand Bafna vs ITO

ITAT Mumbai

When income is estimated on turnover, separate addition for cash deposits from the same business is not sustainable.

Frequently Asked Questions

Do I have to appear personally?

No. Your CA or authorised representative can appear on your behalf with a valid Power of Attorney.

What if I miss the deadline?

The AO can make an ex-parte best judgement assessment. It is critical to respond within the given time.

Can the notice be challenged?

Yes, if not selected within the prescribed time limit or if reasons are arbitrary, the notice can be challenged in court.