A Section 143(2) notice is one of the most significant notices you can receive. It means the Income Tax Department has selected your return for detailed scrutiny — not just a computer check, but a full human review of your income, deductions, and supporting documents.
Why Was Your Return Selected?
- High-value deductions claimed (Section 80C, 80D, etc.)
- Significant discrepancy between ITR and Form 26AS/AIS
- Large cash deposits or withdrawals in the year
- Foreign income or assets not properly disclosed
- Random selection under CASS (Computer-Assisted Scrutiny Selection)
Your Legal Rights
Section 143(2) notice must be served within 3 months from the end of the financial year in which the ITR was filed. If served later, it is legally invalid. Always verify the date of issue with your CA before responding.
What Documents Will Be Asked For?
- Complete books of accounts for the relevant year
- Bank statements (all accounts)
- Investment proofs for all deductions claimed
- Property sale/purchase documents if applicable
- Foreign asset disclosures (Schedule FA)
- Business income supporting documents
The Assessment Process
After the notice, the Assessing Officer schedules hearings via e-proceedings. Your CA appears on your behalf, submits documents, and makes arguments. The AO then passes an assessment order — which may accept your return, make additions to income, or issue a tax demand.
If an Addition Is Made
You can appeal the order to the Commissioner of Income Tax (Appeals) within 30 days of receiving the assessment order. All appeals are filed on the Income Tax e-filing portal. Related: complete guide to all notice types.