Income Tax Assessment Order — Section 143(1), 143(3) & 148 Explained
Types of Income Tax Assessment Notices at a Glance
| Section | Notice / Order Type | Issued By | Response Timeline | Purpose |
|---|---|---|---|---|
| 143(1) | Intimation (automated) | CPC Bengaluru | 30 days (if demand raised) | Arithmetic corrections, disallowances, TDS mismatch |
| 143(2) | Scrutiny notice | Assessing Officer | As specified (usually 15–30 days) | Detailed examination; taxpayer must submit documents |
| 143(3) | Assessment order | Assessing Officer | Appeal within 30 days (CIT-A) | Final order passed after scrutiny proceedings |
| 144 | Best judgment assessment | Assessing Officer | Appeal within 30 days | When taxpayer fails to file ITR or respond to notices |
| 147/148 | Reassessment notice | Assessing Officer | File ITR in response within time given | Re-opens closed assessments if income escaped |
| 148A | Show cause notice (pre-148) | Assessing Officer | 7 days | Mandatory SCN before issuing Section 148 notice |
| 156 | Demand notice | Assessing Officer | Pay within 30 days | Communicates tax demand; non-payment attracts interest |
Section 143(1) — Intimation from CPC
After you file your ITR, the Centralised Processing Centre (CPC) at Bengaluru processes it electronically. Within 9 months of the end of the financial year in which the return was filed, CPC may send an intimation under Section 143(1).
The intimation compares the income and tax as computed by the system against what you declared. Adjustments can be made for:
- Arithmetic errors in the ITR
- Incorrect claims that are inconsistent with information in the return itself
- Disallowance of loss carried forward from earlier years (not reported in earlier returns)
- Disallowance of expenditure indicated in audit reports but not included in ITR
- TDS mismatch — credits in Form 26AS / AIS vs what you claimed
If the intimation shows a refund, demand, or no demand (no difference), you will receive it by email and on the portal. A demand intimation must be responded to within 30 days.
Section 143(2) — Scrutiny Notice
The Assessing Officer (AO) issues a Section 143(2) notice to select a return for detailed scrutiny. This is done either through Computer Aided Scrutiny Selection (CASS) or manually for high-risk returns. The notice must be issued within 3 months from the end of the financial year in which the return was filed.
Upon receiving this notice, you must respond through the e-Proceedings module on incometax.gov.in. The AO may call for specific documents or ask for written explanations on particular issues such as large cash deposits, foreign income, capital gains, or high deduction claims.
Section 143(3) — Assessment Order After Scrutiny
After reviewing all submissions, the AO passes a final assessment order under Section 143(3). This order determines the total income and tax liability. If the AO makes additions to your income or disallows deductions, the resulting demand must be communicated via a Section 156 demand notice.
If you disagree with the order, you can file an appeal before the Commissioner of Income Tax (Appeals) [CIT-A] within 30 days using Form 35 on the income tax portal.
Section 148 — Reassessment Notice
A Section 148 notice is issued when the AO believes income chargeable to tax has escaped assessment in a past year. Before issuing this notice, the AO must issue a Section 148A show cause notice and give the taxpayer 7 days to respond.
| Scenario | Time Limit for Reassessment |
|---|---|
| Normal cases (income up to ₹50 lakh escaped) | 3 years from end of relevant Assessment Year |
| High-value cases (escaped income > ₹50 lakh) | Up to 10 years (with PCIT/CCIT approval) |
| Cases involving search / survey | Up to 6 years (10 years in some cases) |
How to Respond to Income Tax Notices Online
All responses to income tax notices must be submitted electronically through the e-Proceedings module. Follow these steps:
- Log in to incometax.gov.in using your PAN and password.
- Go to Pending Actions → e-Proceedings.
- Select the relevant notice and click Submit Response.
- Upload your written reply and all supporting documents (bank statements, invoices, contract deeds, Form 26AS, AIS, etc.).
- Submit and download the acknowledgement for your records.
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