Scrutiny notice under Section 143(2)

What this section is

Section 143(2) is the gateway to a scrutiny assessment under Section 143(3). The AO calls upon the assessee to attend the office or produce evidence in support of the return. Cases are picked up either through CASS (Computer Assisted Scrutiny Selection) or compulsory scrutiny criteria issued by the CBDT.

When it is issued

Must be served within three months from the end of the financial year in which the return is filed. A notice issued beyond this period is invalid.

What you should do

1. 1First, check the date of issue and service against the limitation. A defective service is itself a complete defence.
2. 2Identify whether the case is a Limited Scrutiny, a Complete Scrutiny, or a Compulsory Manual Scrutiny — the type is mentioned in the notice.
3. 3Engage a Chartered Accountant immediately. Scrutiny replies set the foundation for any appeal you may need to file later.
4. 4Prepare a master file: return, computation, books, bank statements, third-party confirmations, and a written submission addressing each scrutiny reason.
5. 5Track every notice and reply on the e-filing portal — faceless scrutiny is now the default.

Documents typically needed

• Return, audit report, and computation
• Books of account, bank statements, vouchers
• Third-party confirmations (loans, gifts, sales)
• Documentary evidence for every claim made in the return

Common mistakes

• Treating it like a 143(1) intimation. It is a quasi-judicial proceeding.
• Missing the personal hearing or video conferencing window.
• Filing inconsistent submissions — every later submission must reconcile with the earlier one.