EaseValueA Section 143(2) notice means the Income-Tax Department has selected your filed return for detailed scrutiny. It must be issued within three months from the end of the financial year in which you filed the return. The assessment is now faceless — you respond online through the e-proceedings tab, not in person — and it ends in an assessment order under Section 143(3). A 143(2) notice is not a demand; it is a request to substantiate the entries in your return, and a well-documented reply usually closes it without any addition.
What triggers a 143(2) scrutiny notice?
Returns are picked through the CASS (Computer-Assisted Scrutiny Selection) system or on specific risk parameters — large refunds, high-value transactions in the AIS, mismatches between the return and 26AS/AIS, big deductions or exemptions, or cash deposits. The notice will usually state whether it is limited scrutiny (one or two specific issues) or complete scrutiny (the whole return).
Time limit — is your notice valid?
Under the proviso to Section 143(2), the notice cannot be served after three months from the end of the financial year in which the return was furnished. A notice issued beyond this period is invalid, and any assessment built on it is liable to be set aside. Always check the date first.
Limited vs complete scrutiny
- Limited scrutiny: the AO can examine only the flagged issue(s). Expanding it to a full review requires approval — an important safeguard.
- Complete scrutiny: the entire return is open to examination.
How to reply — the faceless e-proceedings process
- Log in to the e-filing portal and open the e-Proceedings tab; all notices and your responses flow through it.
- Read the questionnaire (usually a 142(1) notice follows) and answer each point specifically, attaching documentary proof.
- Reconcile with AIS/26AS. Most additions arise from mismatches you can explain (gross vs net, duplicate reporting, exempt income).
- Meet every deadline; seek adjournment through the portal if you need time, before the date expires.
- Keep the record clean. Whatever you file becomes the basis of any later CIT(A)/ITAT appeal.
What if you don't respond?
Non-response leads to a best-judgment assessment under Section 144, usually with additions and a penalty under Section 270A. Silence almost always costs more than a proper reply.
143(1) vs 143(2) vs 148 — don't confuse them
- 143(1): an automated intimation (adjustments/refund), not scrutiny.
- 143(2): selection for scrutiny of a filed return.
- 148: reopening a past year for income that escaped assessment.
How EaseValue handles scrutiny
We check the notice's validity, draft point-wise replies with a documented paper trail, reconcile the AIS, and represent you through the faceless system — with the goal of closing the assessment at 143(3) with no addition.