What is Section 143? Assessment After Filing Return

Along with Section 142, Section 143 of the Income Tax Act is frequently invoked by the Income Tax Department to assess returns already filed by the taxpayer. This section outlines two key types of assessments: summary processing under Section 143(1) and scrutiny assessment under Section 143(2).

Section 143(1) deals with the preliminary processing of the Income Tax Return (ITR). You may receive a notice under this sub-section in cases of minor discrepancies, such as arithmetic errors in the return, incorrect claims, or standard disallowances and adjustments. While this is not necessarily adversarial, it is important to review the notice promptly to ensure that no miscalculations lead to future complications.

Section 143(2), on the other hand, is issued when the Assessing Officer suspects inaccuracies in your return and decides to conduct a scrutiny assessment. This notice demands a detailed explanation and supporting documentation for the income declared. Ignoring or delaying a response to a 143(2) notice can result in substantial tax liabilities or penalties. If your income tax notice is under scrutiny, it is crucial to respond smartly to Section 142(1) and all related notices. FilingRAASTA’s expert legal and tax team can help you navigate the complexities with confidence.

Section 148 – Reassessment of Escaped Income

A notice under Section 148 of the Income Tax Act signifies that the Assessing Officer has reason to believe that some portion of your income has escaped assessment. This reassessment can relate to past financial years and may lead to reopening of old returns.

Common triggers for a Section 148 notice include income that was not reported in previous returns, high-value or suspicious bank transactions, or real estate deals and investment activities that do not align with your declared income. Many times, a Section 142(1) of Income Tax Act notice is issued prior to a Section 148 action, serving as a prelude to the reassessment proceedings.

At FilingRAASTA, we help clients respond strategically to such notices, ensuring their rights are protected and that the correct legal processes are followed from the very first communication.

Documents You’ll Need to Respond

To respond smartly to Section 142(1) and similar notices, it is vital to have your paperwork in order. Some of the essential documents include your PAN and Aadhaar, a copy of the notice received, Income Tax Returns (ITRs) for relevant years along with the computation of income, and Form 26AS, which reflects all TDS deducted.

Additionally, bank account statements, TDS certificates, and all supporting proofs for deductions claimed under Sections 80C, 80D, or exemptions under Sections 10(14), 10(13A), etc., must be collected. FilingRAASTA assists clients in compiling and presenting this documentation in a professional, legally sound manner.

Legal Principles That Support You

When you respond to a notice under Section 142(1), certain legal principles are inherently in your favour. The doctrine of “Audi Alteram Partem”, meaning “let the other side be heard,” grants every taxpayer the right to present their side before any adverse order is passed.

The GKN Driveshaft Rule, as laid down by the Hon’ble Supreme Court, ensures that the assessee is entitled to the reasons for reassessment under Section 148 and can object before any reassessment is completed. Moreover, the concept of “mens rea”—mental intent—is relevant in penalty proceedings, highlighting that penalties should only apply when there is deliberate wrongdoing.

These legal principles provide strong foundational rights that enable you to respond smartly to Section 142(1) and related notices confidently and lawfully.

Avoid These Common Mistakes

Many taxpayers make avoidable errors when dealing with income tax 142 (1) notices. The most common mistake is delaying the response or missing the deadline, which may result in best judgment assessment under Section 144 or even penalties.

Another major issue is submitting incomplete or inaccurate information. Some also ignore the seriousness of the notice and avoid seeking professional guidance. Always remember—being proactive is the key to a smooth resolution. Respond smartly to Section 142(1), and avoid legal consequences by staying timely, accurate, and compliant.

Why FilingRAASTA is Your Best Ally

With expert Chartered Accountants and tax lawyers, FilingRAASTA offers comprehensive support for responding to income tax notices under Section 142(1), Section 143, and Section 148. Our team ensures the prompt drafting of replies, accurate submission of documentation, and full representation before tax authorities.

From the first income tax notice to the final resolution or appeal, we handle every step with professionalism, precision, and legal insight. Trust FilingRAASTA to be your trusted partner in tax compliance and litigation support.