Tax notices + litigation · Income Tax Notice
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Sec 143(1) (now Sec 270(1), Income-tax Act 2025) is an automated intimation, not a proper assessment. The CPC (Centralised Processing Centre) in Bengaluru processes your ITR and sends this when: (a) the numbers match and your return is accepted, refund issued, or (b) the system finds a mismatch, tax demand raised.
IT Act 1961, Sec 143(1) (now 270(1)) | Time limit: 9 months from end of AY
Three outcomes in a Sec 143(1) (now Sec 270(1)): • Demand: System says you owe more tax, check if it's right. Common reasons: TDS mismatch (your Form 26AS (now Form 168) vs what you claimed), deduction not matching books, income missed. • Refund: System agrees you overpaid, refund will credit to bank account. • Neither: Accepted as filed. No action needed. Most Sec 143(1) (now Sec 270(1)) demands are wrong, AIS/26AS (now Form 168) data entry errors, employer TDS timing mismatch. Respond with rectification under Sec 154 (now Sec 287) before paying.
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