How To · Income Tax · Section 143(2)

How to Respond to an Income Tax Scrutiny Notice Under Section 143(2)

Updated for 2026 · Claw Editorial

A Section 143(2) notice means your return has been picked for scrutiny, so the Assessing Officer intends to examine the claims in it in detail rather than just process it. This is a serious notice, but it is not a penalty or a prosecution; it is the start of an assessment where the department asks questions and you answer them with evidence. Almost all such assessments are now faceless, which means the questions and your replies move through the e-filing portal and you do not meet an officer in person. This page explains what a 143(2) notice is, how the faceless assessment runs, how to answer each notice under Section 142(1) with the right documents, how the assessment order under Section 143(3) is passed, and the appeal route to the CIT(Appeals) and the Income Tax Appellate Tribunal if that order is wrong. This is general guidance, not tax advice. Last verified October 2026.

01What a 143(2) notice means

A notice under Section 143(2) tells you the return you filed is being taken up for scrutiny. The scrutiny may be limited (a few specific issues flagged by the system, such as a large deduction or a mismatch) or complete (a full examination). The notice or the follow-up should tell you which issues are in question.

This is different from the automated processing and scrutiny explainer intimation under 143(1). A 143(2) is a human-driven assessment, so what you say and what you prove now shapes the final tax demand.

02Check the notice is valid

Before you reply, confirm the notice is in order, because a time-barred or mis-served notice can be challenged:

• Timing. A 143(2) notice must be served within the period allowed from the end of the financial year in which the return was filed. A notice beyond that window is open to challenge.
• DIN. Every genuine notice carries a Document Identification Number; verify it on the portal. A notice without a valid DIN is treated as not issued.
• PAN and year. Check that the PAN and assessment year are yours and correct.

03How faceless assessment works

Scrutiny assessments are largely faceless. In practice this means:

• The case is handled by a National Faceless Assessment Centre, not your local officer, and you do not know or meet the individual officer.
• All communication is electronic, through the e-Proceedings tab on incometax.gov.in.
• Detailed questions come as notices under Section 142(1) asking for accounts, documents and explanations.
• You can request a personal hearing through video conferencing where the rules allow it.

Because it is document-driven, the quality and completeness of your uploaded replies decide the outcome more than anything said in person.

04Answer every query properly

• Step 1. Log in at incometax.gov.in, open e-Proceedings, and read the exact questions and the deadline in each 142(1) notice.
• Step 2. Prepare a point-by-point reply tied to documents: bank statements, invoices, ledgers, agreements, confirmations, valuation reports, whatever proves the claim in question.
• Step 3. Upload the reply and annexures within the portal size limits, splitting large files if needed, before the deadline.
• Step 4. If you need more time, seek an adjournment through the portal before the date, not after.
• Step 5. If the officer proposes an addition, you get a show cause notice and a draft; answer it fully, because this is your last chance before the order.

05The 143(3) assessment order

The scrutiny ends with an assessment order under Section 143(3). It either accepts your return or makes additions and raises a demand, with a notice of demand under Section 156 and sometimes a penalty notice.

Read the order carefully against your replies. The grounds the officer gives, and whether your evidence was considered, are exactly what an appeal will turn on, so note every addition and the reason stated for it.

06If the order is wrong: appeal

• First appeal: to the CIT(Appeals) in Form 35 on the e-filing portal, generally within 30 days of the order, with grounds, a statement of facts and the appeal fee.
• Stay of demand: you can apply to stay recovery of the disputed demand, often on paying a part of it, while the appeal is pending.
• Second appeal: to the Income Tax Appellate Tribunal (ITAT) in Form 36 if the CIT(A) order is still against you.
• Beyond ITAT, a substantial question of law goes to the High Court and then the Supreme Court.

Confirm the current appeal fee, the limitation period and the stay rules against the Act before filing. Once filed, each appeal is a live proceeding with hearings and orders.

07Track the appeal with Claw

Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.

A scrutiny that ends in a disputed addition often runs for years through the CIT(Appeals), the Income Tax Appellate Tribunal and sometimes the High Court. You can create a FREE Claw account and track the matter across the forum that hears it, right up to the ITAT. Claw covers 9,102 courts, benches and forums including ITAT benches and the High Courts, returns results in under 5 seconds, and its judgment search spans 30 crore+ judgments (Supreme Court from 1950 and High Courts from 1990), so your counsel can see how similar scrutiny additions and the same issue were decided elsewhere. Claw does not train its AI models on your documents. A clean search result only means nothing was found on the forums and date searched, and this is general information, not tax or legal advice.

To find how your issue was decided, run a case search across Indian courts. Before you enter a joint venture, a litigation check before a JV or partnership uses the same engine.

08Sources and further reading

• Income Tax e-filing portal: incometax.gov.in
• e-filing login: eportal.incometax.gov.in
• Income Tax Appellate Tribunal: itat.gov.in
• eCourts (High Court case status): ecourts.gov.in
• Claw: clawlaw.in

This page is general information for an Indian audience, not tax or legal advice. Confirm current forms, fees and time limits on the official portal and take professional advice on your assessment.

09Frequently asked questions