Reply to Notice Under Section 143(2) — Scrutiny Assessment Draft

BEFORE THE NATIONAL FACELESS ASSESSMENT CENTRE / [Assessment Unit]
INCOME-TAX DEPARTMENT

Filed electronically through the e-Filing / e-Proceedings portal
(www.incometax.gov.in) in response to notice issued under section 143(2)
of the Income-tax Act, 1961.

Name of Assessee   : [Name of Assessee]
PAN                : [ABCDE1234F]
Assessment Year    : [A.Y. 20__-__]
Financial Year     : [F.Y. 20__-__]
DIN & Notice No.   : [DIN/Notice number] dated [DD/MM/YYYY]
Case selected under: [Limited / Complete] Scrutiny — CASS
Response Date       : [DD/MM/YYYY]

To,
The Assessing Officer / Assessment Unit,
National Faceless Assessment Centre,
Income-tax Department.

Subject: Submission in response to notice under section 143(2) of the
         Income-tax Act, 1961 for A.Y. [20__-__] — reg.

Respected Sir/Madam,

1.  This is with reference to the notice under section 143(2) of the
    Income-tax Act, 1961 bearing DIN [___] dated [DD/MM/YYYY], whereby the
    case of the assessee for A.Y. [20__-__] has been selected for
    [limited/complete] scrutiny through CASS on the issue(s) of
    [state the issue(s), e.g. "large increase in unsecured loans",
    "mismatch in turnover reported in GST and ITR", "cash deposits during
    the year"].

2.  The assessee filed the return of income for A.Y. [20__-__] on
    [DD/MM/YYYY] vide acknowledgement no. [___], declaring total income of
    ₹[amount]. The return was duly verified and processed under section
    143(1). Copy of the return, computation and 143(1) intimation is
    enclosed (Annexure-1).

3.  Issue-wise submission on the point(s) flagged:

    Issue (a): [State issue exactly as raised]
    -----------------------------------------
    The amount of ₹[amount] represents [explanation of nature and source].
    The same is fully supported by [ledger extract / bank statement /
    confirmation / invoices / agreement]. On these facts the addition
    proposed, if any, is not warranted because [legal/factual reason].
    Documents in support: Annexure-[__].

    Issue (b): [State issue]
    ------------------------
    [Explanation, quantum, source, and supporting evidence with annexure
    reference.]

4.  All the transactions in question have been carried out through banking
    channels and are duly recorded in the regular books of account, which
    are audited/maintained under section 44AB / 44AA. The nature and source
    stand explained within the meaning of section 68 / 69 / 69A, as
    applicable, and no addition is called for.

5.  The assessee is a regular and compliant taxpayer and undertakes to
    furnish any further information or clarification that the Assessment
    Unit may require. It is prayed that the assessment be completed after
    considering the above submissions, and that a reasonable opportunity of
    being heard (including through video conferencing, if a variation is
    proposed) be granted before any adverse view is taken, in accordance
    with the faceless assessment scheme and the principles of natural
    justice.

PRAYER
It is respectfully prayed that the return of income filed for A.Y.
[20__-__] be accepted as filed and the proceedings be dropped, and no
addition/variation be made to the returned income.

List of enclosures:
  1. Copy of return, computation of income and 143(1) intimation.
  2. Audited financial statements / Form 3CB-3CD (if applicable).
  3. Bank statements highlighting the relevant entries.
  4. Ledger extracts, confirmations, invoices and agreements.
  5. [Any other document].

Thanking you,

Yours faithfully,

For [Name of Assessee]

______________________________
[Signature — Assessee / Authorised Representative]
Name : [Name]
PAN  : [ABCDE1234F]
Capacity: [Self / Authorised Representative — Membership/Enrolment No.]
Place: [City]      Date: [DD/MM/YYYY]