# Scrutiny Assessment — Section 143(2) & Faceless Assessment

> A notice under Section 143(2) means your return has been selected for scrutiny assessment. It must be served within three months from the end of the financial year in which the return was filed. Most scrutiny cases now run as faceless assessments: questions come through the e-filing portal, replies and evidence are uploaded online, a show-cause notice is issued before any addition, and a personal hearing by video conference can be requested.

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

Scrutiny can be limited (on specific issues) or complete. The first notice and the questionnaires that follow tell you which. Replies must be evidence-led — reconciliations, confirmations and documents — because the assessment is decided on the written record.

Before an addition is made, a show-cause notice with the proposed variation is issued; this is the most important reply in the process. A video-conference hearing can be requested to explain complex issues.

We manage the case end to end: reading each notice, building the submission file, drafting replies to show-cause notices and preparing the appeal if an addition is still made.

## Key facts

| Item | Detail |
| --- | --- |
| Notice deadline | Within 3 months from end of the FY in which the return was filed |
| Mode | Faceless assessment through e-Proceedings |
| Before additions | Show-cause notice with proposed variation |
| Hearing | Video conference on request |
| New Act | Assessments for tax year 2026-27 onwards follow the Income-tax Act, 2025 |

## Who needs this

- Taxpayers selected for limited or complete scrutiny
- Businesses with large cash deposits, losses or refund claims
- NRIs and investors flagged for high-value property or securities transactions

## What's included

- Notice tracking
- Submission file with reconciliations
- Show-cause replies
- Video hearing support
- Appeal strategy

## Documents

- 143(2) notice and questionnaires
- ITR and computation
- Books of account, bank statements, confirmations

## Process

1. **Scope** — Issues under scrutiny identified.
2. **Evidence** — Documents and reconciliations prepared.
3. **Replies** — Each notice answered within time.
4. **Order** — Order reviewed; appeal or rectification planned.

## Also covers

- **Faceless assessment** — Online assessment under the faceless scheme.
- **Assessment proceedings** — Representation through the complete assessment cycle.

## FAQs

### Why was my return selected for scrutiny?

Usually because of risk parameters such as large cash deposits, high-value transactions not matching income, big refunds or losses, or specific information received by the department.

### Do I have to visit the tax office?

No. Faceless assessment is online; personal hearings are by video conference on request.

### What is the most important stage?

The reply to the show-cause notice proposing additions — it is the last opportunity before the order.

## 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/

---
Canonical page: https://www.industax.com/services/tax-litigation/scrutiny-assessment-143-2
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.