Income Tax Notices, Assessment & Appeals in Raipur

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Practice Index (8 Sections)

Practice Overview & Verification

Income Tax Notices, Assessment & Appeals in Raipur — Statutory Scope

Chartered Accountancy advisory and audit services in Raipur, Chhattisgarh & Kalahandi, Odisha. Direct partner supervision ensuring full compliance with ICAI standards and applicable statutes.

Receiving an Income Tax notice is a formal legal proceeding that requires immediate professional evaluation. With automated data matching across the Annual Information Statement (AIS), GST returns, banking cash deposits, property registries, and stock trading databases, notices are issued systematically when reported return figures diverge from departmental records.

Under the Income-tax Act, 1961, ignoring a notice or submitting an unverified, informal response results in ex-parte 'best judgment' assessments under Section 144, high tax demands, interest, and prosecution. However, every notice can be defended effectively when supported by documentary evidence, reconciled books of accounts, and jurisdictional law.

At Rabi Agrawal & Associates, we represent corporate entities, high-net-worth individuals, traders, real estate developers, and professionals in National Faceless Assessment Centre (NFAC) scrutiny proceedings, Section 148 reassessments, Section 154 rectifications, and appeals before the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal (ITAT).

⚠️ Statutory Penalty & Risk Advisory

Income Tax Notice Types, Sections & Statutory Response Protocols

Understanding the statutory purpose, response timelines, and legal implications of notices issued under the Income-tax Act, 1961:

Income Tax Notice Types, Governing Sections & Statutory Response Protocols

Notice Section	Statutory Notice Type / Trigger	Statutory Response Window	Primary Departmental Objective	CA Representation Strategy
Section 143(1)(a)	Intimation / Prima Facie Adjustment	30 Days from receipt	Arithmetical errors, tax calculation variance, TDS/26AS credit mismatches	Filing Section 154 Rectification or response on e-filing portal to correct credits
Section 139(9)	Defective Return Notice	15 Days (Extendable on request)	Missing schedules, balance sheet mismatches, unpaid self-assessment tax	Correcting defects and uploading revised XML/JSON computation within 15 days
Section 142(1)	Preliminary Inquiry / Notice for Accounts	As specified in notice (usually 15 days)	Calling for books of accounts, bank statements, asset ledgers, vendor details	Submitting itemized written submission with audited ledgers and bank reconciliations
Section 143(2)	Faceless Scrutiny Assessment Notice	Issued within 3 months from end of FY in which return was filed	Detailed statutory assessment of income, deductions, and tax compliance	Compiling comprehensive paperbook, legal citations, and online NFAC submissions
Section 148A(b) / 148	Reassessment of Escaped Income	148A(b): 7 to 30 days / Section 148: 30 days to file return	Reopening past years (up to 3 or 10 yrs if escaped income >= ₹50 Lakhs)	Challenging jurisdictional validity, approval under Sec 151, limitation & merits
Section 245	Intimation of Refund Set-Off	30 Days from receipt	Proposing to adjust current refund against outstanding past demand	Verifying demand validity; submitting online disagreement for incorrect demands
Section 270A / 271AAC	Penalty Show Cause Notice	As specified in notice (usually 30 days)	Levying 50% to 200% penalty for under-reporting / misreporting of income	Filing rebuttal proving bona fide explanation and immunity under Section 270AA

Notice Section: Section 143(1)(a)

Statutory Notice Type / Trigger: Intimation / Prima Facie Adjustment

Statutory Response Window: 30 Days from receipt

Primary Departmental Objective: Arithmetical errors, tax calculation variance, TDS/26AS credit mismatches

CA Representation Strategy: Filing Section 154 Rectification or response on e-filing portal to correct credits

Notice Section: Section 139(9)

Statutory Notice Type / Trigger: Defective Return Notice

Statutory Response Window: 15 Days (Extendable on request)

Primary Departmental Objective: Missing schedules, balance sheet mismatches, unpaid self-assessment tax

CA Representation Strategy: Correcting defects and uploading revised XML/JSON computation within 15 days

Notice Section: Section 142(1)

Statutory Notice Type / Trigger: Preliminary Inquiry / Notice for Accounts

Statutory Response Window: As specified in notice (usually 15 days)

Primary Departmental Objective: Calling for books of accounts, bank statements, asset ledgers, vendor details

CA Representation Strategy: Submitting itemized written submission with audited ledgers and bank reconciliations

Notice Section: Section 143(2)

Statutory Notice Type / Trigger: Faceless Scrutiny Assessment Notice

Statutory Response Window: Issued within 3 months from end of FY in which return was filed

Primary Departmental Objective: Detailed statutory assessment of income, deductions, and tax compliance

CA Representation Strategy: Compiling comprehensive paperbook, legal citations, and online NFAC submissions

Notice Section: Section 148A(b) / 148

Statutory Notice Type / Trigger: Reassessment of Escaped Income

Statutory Response Window: 148A(b): 7 to 30 days / Section 148: 30 days to file return

Primary Departmental Objective: Reopening past years (up to 3 or 10 yrs if escaped income >= ₹50 Lakhs)

CA Representation Strategy: Challenging jurisdictional validity, approval under Sec 151, limitation & merits

Notice Section: Section 245

Statutory Notice Type / Trigger: Intimation of Refund Set-Off

Statutory Response Window: 30 Days from receipt

Primary Departmental Objective: Proposing to adjust current refund against outstanding past demand

CA Representation Strategy: Verifying demand validity; submitting online disagreement for incorrect demands

Notice Section: Section 270A / 271AAC

Statutory Notice Type / Trigger: Penalty Show Cause Notice

Statutory Response Window: As specified in notice (usually 30 days)

Primary Departmental Objective: Levying 50% to 200% penalty for under-reporting / misreporting of income

CA Representation Strategy: Filing rebuttal proving bona fide explanation and immunity under Section 270AA

⚠️ Statutory Penalty & Risk Advisory

Section 148 & 148A Reassessment: Legal Framework & Limitation

Reopening past assessment years under Section 148 is subject to strict statutory preconditions introduced under the Finance Act:

1. Section 148A Inquiry: The Assessing Officer MUST conduct preliminary inquiry under 148A(a), provide show-cause notice with tangible material under 148A(b), and pass a speaking order under 148A(d) before issuing Section 148 notice.

2. Limitation Periods: Normal time limit is 3 years from the end of the relevant assessment year. Reopening beyond 3 years up to 10 years is permitted ONLY if the Assessing Officer has evidence that escaped income represented in the form of an asset/expenditure/entry is ₹50 Lakhs or more for that year.

3. Specified Authority Sanction (Section 151): Prior approval must be obtained from the Principal Chief Commissioner or Principal Director General for cases beyond 3 years.

📋 Document Checklist & Verification

Faceless Assessment & Written Evidence Submission

Under the National Faceless Assessment Centre (NFAC) regime, personal appearances before local officers are replaced by dynamic electronic workflows:

01
Portal Monitoring: Daily monitoring of the e-filing portal worklist for new notices and deadline tracking.
02
Factual & Legal Analysis: Examining the specific questionnaire, gathering primary vouchers, bank statements, confirmation letters, and weighbridge slips.
03
Written Submission & Paperbook: Drafting structured point-by-point responses with page-numbered documentary annexures uploaded as searchable PDFs.
04
Video Conferencing Hearings: Where complex legal interpretations or disputed facts require oral clarification, requesting and appearing in official video conference hearings through the portal.
05
Draft Assessment Order & Modification: Reviewing Draft Assessment Orders and submitting objections before finalization.

Appeals: CIT(Appeals) & Income Tax Appellate Tribunal (ITAT)

When an assessment order makes unjustified additions or disallowances, appellate remedies provide statutory relief:

First Appeal before CIT(Appeals) / NFAC: Filed under Section 246A within 30 days of receiving the assessment order/demand notice in Form 35. We draft Grounds of Appeal, Statement of Facts, and file applications for stay of demand (seeking 20% deposit relaxation under CBDT circulars).

Second Appeal before ITAT: Filed under Section 253 within 60 days of CIT(A) order in Form 36. The ITAT is the highest fact-finding judicial authority, where our senior partners appear for physical/virtual hearings with comprehensive paperbooks and judicial precedents.

Scope of Practice Services by CA Rabi Agrawal & Associates

We provide comprehensive representation for scrutiny notices, Section 148 reassessments, high-value cash deposit inquiries, property capital gains notices, Section 154 rectification petitions, Section 264 revision petitions, and CIT(A) / ITAT appeal advocacy.

📍 Pandri, Raipur Practice Headquarters

Consult CA in Raipur for Income Tax Notices, Assessment & Appeals in Raipur

Visit our Head Office at GF-28, Shyam Plaza, Pandri, Raipur or connect directly with our Chartered Accountant partners for end-to-end advisory and statutory compliance.

🏛️ CA in Raipur Hub →📞 +91 86978 14116

What should I do immediately after receiving an Income Tax notice?

Check the notice section, date of issue, DIN (Document Identification Number), and the compliance deadline (usually 15 to 30 days). Do not ignore the notice; contact our practice immediately with copies of the filed ITR and notice PDF.

What is the time limit for the department to reopen past years under Section 148?

Under Section 149, normal reassessment notice can be issued within 3 years from the end of the relevant assessment year. Beyond 3 years up to 10 years, notices can only be issued if escaped income is ₹50 Lakhs or more.

What is the deadline for filing an appeal before CIT(Appeals)?

Under Section 249(2), the appeal in Form 35 must be filed electronically on the income tax portal within 30 days of the date of service of the assessment order or demand notice.

Do I have to pay the entire disputed tax demand before filing an appeal?

No. While filing an appeal does not automatically stay demand recovery, taxpayers can apply for a stay of demand under Section 220(6), typically accompanied by payment of 20% of the disputed demand as per CBDT guidelines.

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