Income Tax Notice Response

The income tax department's notice machinery has digitised, accelerated, and tightened. By AY 2026-27, the e-filing portal cross-validates AIS, TIS, 26AS, GSTR-1, SFT data, and FATCA / CRS exchange data against your filed return — and any mismatch triggers a notice within weeks. The faceless regime under Section 144B means the officer is anonymous, communication is electronic, hearings are virtual, and the response window is short. Once a draft assessment order is passed, the window to argue substantive merits closes — and best-judgment assessment under Section 144 with Section 270A penalty (50% under-reporting / 200% mis-reporting) becomes the default outcome of inaction.

The notice you receive defines the response strategy. Section 143(1) intimation (auto-adjustments, refund or tax payable). Section 142(1) requisition (specific information / documents). Section 143(2) regular scrutiny (CASS-selected, faceless). Section 148 reassessment (post the 2021 amendments and Ashish Agarwal compliance). Section 245 refund adjustment. Section 270A / 271 penalty. Black Money Act notices (foreign asset non-disclosure detected via FATCA / CRS). Each has its own time-limit, format, and tactical considerations. Filing the wrong response — or the right response too late — converts a recoverable position into a confirmed demand.

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

The Notices We Routinely Handle

• Section 143(1) — Intimation:: Arithmetic adjustments, mismatched TDS, disallowed deductions; rectification under Section 154 if intimation is wrong; refund follow-up via grievance.

• Section 142(1) — Preliminary Inquiry:: Specific document / information requisition; failure to respond enables best-judgment assessment under Section 144.

• Section 143(2) — Regular Scrutiny:: CASS-selected (limited / complete); faceless under Section 144B; draft order rebuttal; final order under Section 143(3).

• Section 148 / 148A — Reassessment:: Post the 2021 amendments — 148A inquiry, 148A(b) show-cause, 148A(d) order, then 148 notice; Ashish Agarwal v. UoI (2022) compliance.

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

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

• Section 270A / 271 — Penalty:: Under-reporting (50%) / 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; FATCA / CRS-detected non-disclosure.

• CIT(A) / ITAT Appeals:: Section 250 first appeal (faceless); Section 253 second appeal to ITAT; written submissions, virtual hearings.

Why Most Self-Filed Replies Fail

Vague reply without working papers. Document dump without bookmarks. Missing the 7-15 day response window. Treating Section 142(1) as optional. Replying to 148A(b) without challenging the foundational 148A(a) order. Ignoring AIS reconciliation. Conceding additions in the reply itself. Skipping the personal hearing (virtual under Section 144B). Each of these turns a recoverable position into a confirmed demand with penalty.