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Scrutiny notice under section 143(2) is sent to an assesse when the AO finds the produced documents to be inappropriate. Read this guide by H&R Block India.

How to Respond to Scrutiny Notice u/s 143(2) of Income Tax Act

Last Update Date : November 24, 2017

This notice is basically sent if the AO (Assessing Officer) assessed the tax return filed by assesse and was not satisfied with the produced documents or may be he has not received any documents.

If you get notice under section 143(2), it means your return has been selected for detailed scrutiny by your Assessing Officer.

Here are some important facts you should know about scrutiny notice:

  • This notice can be served up to the expiry of six months from the end of the Financial Year in which the return is furnished.
  • IF the assesse (you) have not furnished your return of income, then notice u/s 143(2) cannot be issued to you and also scrutiny assessment cannot be done. In such a case, direct ‘Best Judgment Assessment’ under Section 144 is done by the AO.
  • The notice might ask you to produce documents in support of deductions, exemptions, allowances, reliefs other claim of loss you have made and provide proof of all sources of income.
  • Section 143(2) enables the Assessing Officer to make a regular assessment after a detailed inquiry.

If you fail to comply with the provisions of this section: 

  • It may result in ‘Best Judgment Assessment’ of your case u/s 144 or;
  • Imposition of penalty u/s 271(1)(b) i.e. Rs10,000 for each failure or;
  • Prosecution u/s 276D which may extend up to 1 year with or without fine.
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