Section 143(2) Notice – Scrutiny Notice Response & Assessment Support

Professional Guidance for Responding to Income Tax Scrutiny Notices Under Section 143(2)

A Section 143(2) notice is the formal communication initiating a scrutiny assessment of a filed income tax return. It is issued by the Assessing Officer when the return has been selected for scrutiny — either through CASS (Computer Aided Scrutiny Selection) or manual selection. The notice requires the taxpayer to appear before the AO (or respond through the faceless system) and produce books of account, documents, and evidence in support of the return. The Section 143(2) notice must be issued within 6 months from the end of the financial year in which the return was filed.

Responding to a Section 143(2) notice correctly and comprehensively is the foundation of a successful scrutiny defence. Our professionals provide complete scrutiny assessment support, connecting with our Scrutiny Assessment, Notice Reply Support, CIT(A) Appeal, and Section 143(1)(a) Notice services.

Our Services

Notice Validity Check

Confirming the Section 143(2) notice was issued within the 6-month jurisdictional deadline, bears a valid DIN, and was served through the correct channel — establishing whether any jurisdictional challenge is available.

Case Type Assessment

Determining whether the return was selected for limited scrutiny (specific CASS issues) or complete scrutiny — which determines the permissible scope of the AO's inquiry and documents needed.

Initial Response Filing

Timely acknowledgement and initial response to the Section 143(2) notice — confirming representation, seeking information about the specific grounds of selection, and establishing the timeline for document submission.

Document Preparation

Comprehensive preparation of all books of account, financial statements, bank statements, TDS certificates, investment proofs, and supporting documents required for scrutiny assessment hearings.

Questionnaire Response Drafting

Drafting detailed, legally precise responses to all questionnaires issued by the Assessing Officer — addressing each query with relevant documentary evidence and appropriate legal arguments.

Hearing Representation

Professional representation at all scrutiny hearing dates before the Assessing Officer — presenting your case, managing document submissions, and ensuring the scope of inquiry remains within permitted limits.

Key Facts About Section 143(2) Notices

Must be issued within 6 months from the end of the FY in which the return was filed — notices beyond this are void
Distinguishes between limited scrutiny (1-2 specific CASS issues) and complete scrutiny (all aspects of return)
AO cannot expand limited scrutiny without converting to complete scrutiny with prior PCIT/CIT approval
Non-compliance leads to ex-parte best judgment assessment under Section 144 with inflated demands
Faceless assessment proceedings require responses through the e-proceedings portal — no physical hearings
Scrutiny must be completed within 12 months from the end of the assessment year under Section 153

Frequently Asked Questions

What is the time limit for issuing a Section 143(2) notice?

Under Section 143(2), the scrutiny notice must be issued within 6 months from the end of the financial year in which the return was furnished. For example, for an ITR filed during FY 2024-25, the Section 143(2) notice must be issued by 30 September 2025. If the notice is issued after this deadline, the AO loses jurisdiction to conduct a scrutiny assessment and the notice can be challenged as void.

What is the difference between limited scrutiny and complete scrutiny?

In limited scrutiny (CASS-based), the examination is restricted to 1-2 specific issues identified during computerised selection. The AO cannot expand the scope without converting to complete scrutiny with prior PCIT/CIT approval. In complete scrutiny, all aspects of the return can be examined. Identifying whether your case is limited or complete scrutiny is critical — it determines what evidence you need to produce.

What happens if I don't respond to a Section 143(2) notice?

If the taxpayer fails to comply with a 143(2) notice or questionnaires, the AO can make a best judgment assessment under Section 144 without your participation — typically resulting in significantly inflated tax demands. Additionally, penalty under Section 271(1)(b) may be levied for non-compliance. Non-response weakens your legal position in any subsequent appeal.

How long does a scrutiny assessment take?

Under Section 153, a scrutiny assessment must be completed within 12 months from the end of the assessment year in which the income was first assessable. Extended time limits of up to 18 months apply where a Transfer Pricing Officer reference or special audit under Section 142(2A) has been ordered. Assessment orders beyond the time limit are barred and can be successfully challenged.

Can the AO make additions beyond the scrutiny notice scope?

For limited scrutiny cases, the AO is restricted to notified issues and cannot add new grounds without converting to complete scrutiny with supervisory approval. For complete scrutiny, the AO can examine all aspects of the return. Our professionals ensure the AO's examination stays within the legally permitted scope.