Income Tax Notice Reply

The Income Tax Department's notice machinery is now fully digital and aggressively automated. By AY 2026-27, the e-filing portal cross-validates AIS, TIS, 26AS, GSTR-1, SFT data and FATCA / CRS reports against the filed return — and any mismatch generates a notice within weeks. The most common in 2026: Section 143(1) intimations (auto-adjustments and refund-linked), Section 142(1) preliminary inquiries (asking for supporting records), Section 143(2) regular scrutiny (faceless), Section 148 reassessment (post the 2021/2022 amendments and the Ashish Agarwal Supreme Court ruling), Section 245 refund adjustment, Section 271 / 270A penalty, and the Black Money Act notices that surface from FATCA / CRS data.

The faceless assessment regime under Section 144B means there is no longer a personal officer to call — every reply, every document, every personal-hearing request goes through the National Faceless Assessment Centre (NFAC). The window for reply is short (typically 7-15 days), the upload limit is restrictive, and the consequences of inadequate response are immediate: best-judgment assessment under Section 144, demand under Section 156, and penalty under Section 270A at 50% (under-reporting) or 200% (mis-reporting).

We respond to income tax notices end-to-end — from a routine 143(1) refund intimation to a complex 148 reassessment to a 271AAB search-related penalty notice — with the working-paper rigour that survives scrutiny and the appellate stamina that wins at CIT(A) and ITAT.

Notice Types We Respond To

• Section 143(1) — Intimation:: Auto-adjustments for arithmetic errors, mismatched TDS, disallowed deductions; rectification under Section 154 if wrong; refund chasing via grievance.

• Section 142(1) — Preliminary Inquiry:: Specific document / information requisition; failure to respond enables best-judgment assessment.

• Section 143(2) — Regular Scrutiny (Faceless):: Limited / Complete scrutiny under CASS; show-cause for additions; draft assessment order; final order under Section 143(3).

• Section 148 — Reassessment (Post-2021 Regime):: Section 148A inquiry, Section 148A(b) show-cause, Section 148A(d) order, then 148 notice; Ashish Agarwal v. Union of India (2022) compliance.

• Section 153A / 153C — Search Cases:: Block assessment for search-and-seizure cases; companion to PMLA / DGGI proceedings often.

• Section 245 — Refund Adjustment:: Refund adjusted against demand; valid only after intimation; objection window for adjustment.

• Section 270A / 271 — Penalty:: Under-reporting (50%) and mis-reporting (200%); concealment penalty under old Section 271(1)(c) for older years.

• Black Money Act — Foreign Asset Notices:: 30% tax + 90% penalty + criminal prosecution; filed against Schedule FA non-disclosure detected via FATCA / CRS.

• Faceless Appeal (CIT(A)) & ITAT:: Section 250 / 251 first appeal; ITAT under Section 253; written submissions, virtual hearings, ground-by-ground argument.

Why Most Self-Filed Replies Lose

Vague reply without working papers. Missing the 7-15 day window. Treating a 142(1) as optional. Replying to 148A(b) without challenging the foundational 148A(a) order. Ignoring AIS reconciliation. Conceding additions in the reply itself. Each of these builds the prosecution case rather than defending it.