# Notice under Section 142(1) — Inquiry before Assessment

> A notice under Section 142(1) is issued during or before an assessment to ask you to file a return (if you haven't) or to produce accounts, documents and information. It states a date for compliance. Not responding can lead to a penalty, a best-judgement assessment under Section 144 based on whatever the department has, and in serious cases prosecution.

Practice: Tax Notices & Litigation — https://www.industax.com/services/tax-litigation/

142(1) notices are commonly issued to people who had high-value transactions or TDS but did not file a return, and in scrutiny assessments to call for specific evidence. The questionnaire attached to the notice defines exactly what must be produced.

We prepare a point-by-point reply with documents uploaded through e-Proceedings, request adjournments with reasons when documents take time, and file the return if the notice asks for one.

## Key facts

| Item | Detail |
| --- | --- |
| Purpose | File a return or produce accounts/documents/information |
| Reply | Through e-Proceedings by the date in the notice |
| Non-compliance | Penalty, best-judgement assessment (Section 144), possible prosecution |
| Adjournment | Can be requested with reasons |

## Who needs this

- Non-filers with high-value transactions
- Taxpayers under scrutiny asked for documents
- Businesses asked for books, bank statements or third-party confirmations

## What's included

- Questionnaire analysis
- Document compilation and explanations
- Return filing if called for
- Adjournment requests

## Documents

- 142(1) notice and questionnaire
- Bank statements and books
- Evidence for each query

## Process

1. **Map** — Each query listed with the evidence needed.
2. **Prepare** — Explanations and documents compiled.
3. **Reply** — Submitted online before the due date.

## FAQs

### I received 142(1) for not filing an ITR. What should I do?

File the return as required by the notice, with all income including the transactions the department has information about.

### What if I can't produce documents by the date?

Request an adjournment online with reasons before the due date.

### What is a best-judgement assessment?

An assessment under Section 144 made on the information available to the officer when the taxpayer doesn't comply — usually much less favourable.

## Official sources

- Income Tax e-Filing portal (e-Proceedings): https://www.incometax.gov.in/
- Income Tax Department — Acts, rules and circulars: https://incometaxindia.gov.in/

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Canonical page: https://www.industax.com/services/tax-litigation/notice-142-1-inquiry
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.