₹21,300 left every month
TaxSavvy for scrutiny notice
Selected for scrutiny? A CA answers every query.
We prepare each reply, upload proof and attend the faceless hearings.
If you wait: Additions bring tax, interest and penalty up to 200% of tax (Sec 439, old 270A)
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
PAN. Notice, all pages, with DIN
Discussion
Limited or complete scrutiny? Which issues?. Explanation for large credits or deposits?
Forms
Submission per issue on e-Proceedings. Video hearing request if needed
Deliverables
Submission acknowledgements. Order explained in plain words
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹36,280 less tax in the new regime
Sample Net worth ₹14.9 lakh
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
Section 270(8) (old 143(2)): Scrutiny Notice
- Facts
- This is NOT automated, a human officer has selected your return for detailed examination. Specific income, deduction, or transaction is under review. Must be responded to with documentary evidence within the timeline given.
- Provisions and law
- Sec 270(8) (old 143(2)); Sec 270(10) (old 143(3)); Sec 144; Faceless Assessment Scheme 2020; Sec 271(1)(c)
- Analysis
- Why your return was selected: (1) Large refund claim, officer verifies legitimacy. (2) High deductions claimed relative to income (e.g. Sec 123, Income-tax Act 2025 (old Sec 80C) of ₹1.5L on ₹3L income). (3) AIS shows transactions not declared (property purchase, large FD). (4) Specific issue risk profiling by IT department. (5) Information from third party (bank, registrar). Faceless assessment, how it works: Notice arrives on IT portal (also email). You respond online through IT portal → e-Proceedings → Response. Upload documents in PDF. No personal appearance. Officer is anonymous, from a different city. National Faceless Assessment Centre (NFAC) coordinates. What to submit: Depends on the specific query in the notice. Common documents: Bank statements, salary slips + Form 130 (old Form 16), investment proofs (ELSS receipts, PPF passbook), home loan certificate, rent receipts, capital gains statement, property registration documents.
- Conclusion
- Login to IT portal → e-Proceedings → View notices (Sec 270(8) (old Sec 143(2)) notice visible)
- Read notice carefully, identify exactly which item / transaction is under scrutiny
- Note response deadline from notice, calendar the date immediately
- Gather all documents related to the queried item (not your entire file)
Section 143(2) (now 270(8)), Scrutiny notice: the real assessment begins
- Facts
- Sec 143(2) (now Sec 270(8), Income-tax Act 2025) means the IT department has selected your return for detailed scrutiny. A human AO (Assessing Officer) or faceless assessment unit will examine specific items in your return. The notice will say what is being questioned, income, deductions, transactions.
- Provisions and law
- IT Act 1961, Sec 143(2) (now 270(8)) | Time limit: 3 months from end of AY | Notice must be issued within 3 months of end of AY (for AY 2024-25 → by 30 June 2025)
- Analysis
- Types of scrutiny: • CASS (Computer Aided Scrutiny Selection): System-selected based on risk parameters, high cash deposits, large deductions, mismatch with TDS data. • Manual scrutiny: AO specifically selected your case, usually means a tip-off or serious red flag. Sec 143(2) (now Sec 270(8)) leads to a formal assessment under Sec 143(3) (now Sec 270(10)). You must respond, ignoring it results in best judgment assessment (AO assumes the worst and raises a demand without hearing you).
- Conclusion
- Check the notice date, if beyond the time limit, the notice is invalid. File a legal objection immediately.
- Read exactly what is being questioned, don't respond to what isn't asked
- Do NOT submit documents before reading the full notice, scope creep is common
- Engage a CA immediately, your response creates a paper trail that affects all future proceedings
Section 270(1) (old 143(1)): Intimation and Demand
- Facts
- The most common IT notice, sent automatically by the CPC computer. Not a scrutiny notice. Not a raid. But if ignored or mishandled, the demand amount gets locked and interest begins. Most Sec 270(1), Income-tax Act 2025 (old Sec 143(1)) demands can be reduced to zero.
- Provisions and law
- Sec 270(1) (old 143(1)); Sec 270(2) (old 143(1)(a)); Sec 289 (old 156); Sec 154; Sec 263(5) (old 139(5))
- Analysis
- What triggers Sec 270(1) (old Sec 143(1)) demand: (1) AIS shows income not declared in ITR, most common. (2) TDS in Form 168 (old Form 26AS) not matching claimed TDS in ITR. (3) Deduction claimed exceeds limit. (4) Arithmetical mistake in ITR. (5) Carried-forward loss claimed without filing return in loss year. Three possible Sec 270(1) (old Sec 143(1)) outcomes: (A) Refund, CPC agrees with your return, issues refund. (B) No demand, no refund, CPC processing matches your return. (C) Demand, CPC finds discrepancy, raises a demand. Do NOT just pay the demand: Sec 270(1) (old Sec 143(1)) demands are often incorrect. In the most common case, FD interest in AIS that taxpayer forgot to declare, the demand is valid but the penalty is avoidable. In the second most common case, TDS credit mismatch due to PAN error by employer, demand is incorrect and should be rectified. Response options: (A) Agree, pay demand.
- Conclusion
- Download Sec 270(1) (old Sec 143(1)) intimation PDF from IT portal, check exact demand amount and reason
- Compare CPC's income computation vs your filed ITR line by line
- Check AIS, identify which item CPC flagged as not declared
- Check Form 168 (old Form 26AS) TDS credits vs TDS you claimed in ITR, any mismatch?
How faceless assessment works: the full process from notice to order
- Facts
- Faceless Assessment was introduced to eliminate local AO corruption and standardise assessment quality. Every case is assigned randomly to an assessment unit in a different city from the taxpayer. All communication is through the income tax e-filing portal.
- Provisions and law
- IT Act, Sec 144B (now 273) | National Faceless Assessment Centre (NaFAC) | CBDT Scheme 2020
- Analysis
- The process: 1. Sec 143(2) (now Sec 270(8), Income-tax Act 2025) notice issued by NaFAC (National Faceless Assessment Centre) 2. Show Cause Notice (SCN) issued if AO proposes additions to income 3. You submit response + documents through portal 4. Draft assessment order issued, you get to see it before it's finalised 5. If you object to draft order: send objection. AO considers it. 6. Final assessment order issued under Sec 143(3) (now Sec 270(10)) 7. Demand notice (156) follows if tax is owed. No personal hearing unless specifically requested and approved. All submissions are documentary.
- Conclusion
- Respond to every notice, no acknowledgement in faceless = deemed default
- Submit all documents as PDF with clear indexing, AO sees hundreds of files; make yours easy to navigate
- Number your submissions, "Submission 1 of 3" prevents confusion
- Always include a written summary at the top of your response explaining your position in plain language
Selected for scrutiny? A CA answers every query.
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