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Case selected for Scrutiny?

Scrutiny (Section 143(3)) is a detailed examination. It requires professional handling, not DIY attempts.

What it usually means

  • Computer Assisted Scrutiny Selection (CASS).
  • Specific information about concealed income.
  • Drastic drop in profit compared to previous years.

Risks if ignored

  • The Assessing Officer (AO) can add arbitrary income.
  • Heavy demands raised on assumptions.
  • Long drawn legal process if not handled well.

Deep Dive Analysis

Scrutiny means the officer wants to verify the genuineness of your income and expenses. It is now 'Faceless', meaning you upload documents online and don't meet the officer. Queries are specific (Limited Scrutiny) or covering the whole return (Complete Scrutiny). Ignoring these notices leads to 'Best Judgment Assessment' (Section 144) where the officer decides tax arbitrarily.

Scrutiny Types

Limited Scrutiny

Checking only specific points (e.g. Cash Deposit).

Complete Scrutiny

Checking entire books of accounts.

Re-Assessment

Re-opening cases up to 10 years old.

Faceless Assessment

Online proceedings without visiting income tax office.

How to Solve This

Select Solution Method

Responding to Notices u/s 142(1)

This is the primary way to handle scrutiny. You must provide evidence.

1

Check 'Pending Actions'

Go to E-Proceedings tab to see the questionnaire.

2

Prepare Paper Book

Convert Bank Statements, Confirmations, Bills, and Ledgers into PDF.

3

Draft Response

Write a cover letter explaining the documents. Upload as 'Full Response'.

Still unsure what to do?

If the steps above seem complicated, or if the amount involved is high, do not risk a DIY fix. Let our CAs handle it.