How to Reply to a Section 142(1) Notice (Inquiry Before Assessment)
A notice under Section 142(1) is an inquiry before assessment. It can require you to file a return if you have not, to produce accounts and documents, or to furnish information on points the Assessing Officer specifies. Respond through the e-proceedings tab of the income tax portal by the stated date, answering each item. Non-compliance can lead to best-judgment assessment under Section 144 and penalty under Section 272A(1)(d).
What is this notice?
Section 142(1) lets the Assessing Officer call for what is needed to make an assessment: the return itself where none was filed, the books and documents for the relevant year, or a statement of assets and liabilities. It is the ordinary opening of an assessment and, by itself, alleges nothing — but it fixes the record on which the assessment will be made.
Common reasons it is issued
- No return filed for a year in which the officer considers you were required to file
- High-value transactions reported in the Annual Information Statement needing explanation
- Cash deposits or credits that do not sit obviously with the declared income
- Verification of claims, deductions or exemptions taken in the return
How to reply — step by step
- Break the notice into its separate requirements and answer each by its own number; a single narrative reply to a nine-item notice reads as non-compliance on eight of them.
- Reconcile against the AIS and Form 26AS for the year before answering, because the officer's figures usually come from there.
- Produce documents rather than describing them — bank statements, confirmations, agreements, ledgers — and index the attachments.
- Where the volume is genuinely large, seek an adjournment on the portal before the due date, with a reason. An adjournment sought late is rarely allowed.
- Keep every submission on the e-proceedings record; an email or a hand-delivered letter is not a reply for the purposes of the assessment record.
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Draft my reply free →Frequently asked questions
Can Section 142(1) be used to ask for accounts of earlier years?
The officer may require accounts and documents relevant to the assessment, but there is a statutory limit on calling for accounts of a period more than three years prior to the previous year. Object specifically where the requisition goes beyond it.
What happens if I do not respond to a 142(1) notice?
The officer can proceed to a best-judgment assessment under Section 144 on the material available, and penalty of ten thousand rupees for each default may be levied under Section 272A(1)(d). Prosecution is also possible in serious cases.
Can I be asked for a statement of all assets and liabilities?
Yes, including assets not recorded in the books, but only with the prior approval of the Joint Commissioner. Check that the approval exists where such a statement is demanded.
Is a 142(1) notice the same as scrutiny?
No. Scrutiny assessment is initiated by a notice under Section 143(2). A 142(1) notice is an inquiry that can precede or accompany it.
Related notices
This page is general information, not legal advice. Every notice turns on its own facts — verify with a professional or draft a fact-checked reply on Yukti.