Income Tax Assessment & Scrutiny Support
A scrutiny or reassessment notice doesn't mean you've done something wrong, it means the department wants specifics verified, and there's a clock running on your response. We represent you through the entire process, from the first notice to the final order, building the reconciliation before we build the argument.
Illustrative recent outcomes. Every case turns on its own facts.
When people come to us
A scrutiny notice arrived and the deadline is running
Section 143(2), or its faceless-era equivalent, and there's no time to figure this out by trial and error.
A high-value transaction triggered a mismatch
A cash deposit, a property purchase, or a transaction that doesn't reconcile cleanly against AIS or 26AS.
A reassessment notice landed for an old return
The facts have gone cold, and the records aren't sitting in an easy-to-find folder anymore.
A faceless query doesn't match how the business works
The unit's question reads like it's about someone else's business, not yours.
The previous CA didn't respond in time
The case is drifting toward an ex-parte best judgment order, and now it needs to be rescued, not just managed.
Scrutiny and reassessment, handled end to end
When a filed return goes beyond routine automated processing into detailed examination, that's a scrutiny assessment. Where the department believes income has escaped assessment in an earlier year, it can reopen that year through a reassessment notice. Both processes have real deadlines, real documentation requirements, and a real cost to getting the response wrong.
We represent clients through the full lifecycle of both: reviewing the notice, reconstructing the financial position, drafting the submission, representing the case through faceless proceedings or before the jurisdictional officer, and reviewing the final order before advising on next steps.
Receiving a scrutiny notice doesn't mean the department thinks you did something wrong. It means specific figures need verifying. How you respond decides which of those two things it turns into.
Which Act actually applies to your notice
If your notice was issued in 2026 or later, it's natural to assume it falls under the new Income Tax Act, 2025. For almost every current scrutiny or reassessment case, that assumption is wrong, and it's worth being precise about why.
Section 536 of the Income Tax Act, 2025, the repeal-and-savings clause, keeps the old Income-tax Act, 1961 governing any proceeding, including notices, assessment, reassessment, and penalty, relating to a tax year that began before 1 April 2026. Since scrutiny and reassessment are, by definition, about returns already filed for past years, this covers essentially every live case right now. Your notice almost certainly cites, and should be responded to under, the old Act's section numbers, not the new ones, regardless of what today's date is.
Who needs this
Selected for Scrutiny
Individuals, NRIs, and businesses selected through algorithmic (CASS) or manual selection.
Flagged Mismatches
Companies and firms with large-value transactions, AIS/26AS mismatches, or department-flagged risk parameters.
Received a Section 142(1) Notice
Anyone asked to produce accounts, books, or explanations before scrutiny formally begins.
Reopened for an Earlier Year
Anyone reopened under the income-escaping assessment provisions for a prior year.
If your notice specifically concerns Indian income as an NRI, our Non-Resident / Foreign Company TDS Refund and DTAA Advisory pages may also be directly relevant, scrutiny cases involving cross-border income often touch both areas at once.
What notice did you actually get?
The three most common notices get confused with each other constantly. Here's what each one actually means.
"We need more information first."
Usually issued when a return hasn't been filed, or when the department wants specific accounts, books, or explanations before deciding whether to proceed further. Often a precursor step, not yet a full scrutiny.
"Your return has been selected for scrutiny."
The formal start of a detailed examination. Must be issued within a set window after you file, and leads to a scrutiny assessment order under Section 143(3), or, if you don't engage, a best judgment order under Section 144.
"We're reopening an earlier year."
A reassessment notice, issued when the department believes income from a prior year escaped assessment. Reopening reaches back further than most people expect, and the facts need to be reconstructed, not just recalled.
Our process, start to finish
Review the Notice
We identify exactly which section it's issued under and the specific query or reason for selection.
Reconstruct Your Position
We reconcile AIS, 26AS, and TIS against your books of account to establish the factual and financial position cleanly.
Draft the Submission
A structured written response with computation, reconciliation statements, and supporting evidence, not a generic reply.
Represent You
Through faceless assessment proceedings, written submissions and video conferencing where permitted, or before the jurisdictional Assessing Officer directly.
Track the Timeline
We monitor the case to ensure it doesn't lapse into an ex-parte best judgment order through inaction.
Review the Final Order
Before advising whether to accept, seek rectification, or appeal.
A generic reply without reconciliation is worse than a late one with proper backing. Both cost you, but only one of them is fixable.
Book a ConsultationDocuments required
- Copy of the notice and any prior correspondence with the department
- Filed return, computation of income, and audited financials, if applicable
- Bank statements, and your AIS, TIS, and 26AS
- Supporting documents for claims made in the return: investment proofs, sale or purchase agreements, loan confirmations
- Books of account and ledgers for the relevant year
- Prior years' assessment orders, if the issue is recurring
The exact document list depends on which notice you've received and what it's asking about. We confirm the specific requirements once we've reviewed your notice. All documents you share are handled confidentially and used solely for your case.
Mistakes that create risk
Ignoring Notices or Missing Deadlines
This is what actually produces an ex-parte best judgment assessment, not the scrutiny itself.
Sending Generic, Unreconciled Replies
A response that doesn't reconcile against AIS/26AS reads as unresponsive even when it isn't meant to.
Not Keeping Records Long Enough
Reassessment can reach back several years, well past when most people stop keeping paperwork.
Treating Scrutiny as Routine
Engaging a professional early changes the outcome more than almost anything done later in the process.
Inconsistent Explanations Across Notices
Inconsistency reads as evasion even when it's just a memory gap.
Getting this wrong compounds quickly, not slowly
- Additions to income, higher tax demand, and interest exposure, plus penalty exposure for under-reporting or misreporting
- A best judgment assessment based on the officer's estimate rather than your actual facts
- Demand recovery proceedings, and bank account attachment in serious cases
- Escalation into appeal and litigation that a timely, well-documented response could have avoided
- Reopening of subsequent years once one year has been flagged
Procedural discipline, not just a strong position
We handle faceless assessment proceedings in a structured, deadline-driven way, because most of what goes wrong in scrutiny cases is procedural drift, not a weak underlying position. Strong reconciliation work comes first: we build the paper trail before we build the argument, since a well-supported submission does most of the work an eloquent one can't.
Our experience spans individual, NRI, and corporate scrutiny cases, and we flag appeal-worthy issues early, while there's still time to plan for them, rather than waiting for the order to arrive and reacting to it.
Reviewed by Cash Stream Advisors, 6+ years representing clients in assessment proceedings.
Case studies
Scrutiny Closed With No Addition
A salaried NRI client's return was flagged over a large property purchase. We reconciled the funding through NRE remittances and prior sale proceeds, and the assessment closed with no addition to income.
Read the full case studyProposed Addition Dropped
A trading company faced a reassessment notice for a transaction three years prior. We reconstructed the books and the treaty position, and the department dropped the proposed addition after our written submission.
Read the full case studyFrequently Asked Questions
Received a Notice?
The clock is already running. We review it, tell you exactly what it means, and handle the response, start to finish.
Book a Consultation