Section 142(1) Notice: Responding to Scrutiny Information Requests
Notice at a Glance
| Parameter | Details |
|---|---|
| Notice type | Preliminary inquiry or demand for documents |
| When issued | Before or during scrutiny assessment |
| Three purposes of 142(1) | (a) Asking non-filer to file return (b) Asking for books/accounts (c) Demanding specific information |
| Time limit to issue | Must be within assessment completion time limit |
| Reply deadline | As specified in notice — typically 15–30 days |
| Can AO call for personal attendance? | Yes — but only for furnishing information, not for oral testimony against assessee |
| Penalty for non-compliance | Section 271(1)(b) — ₹10,000 per default |
| Best judgment assessment risk | Non-compliance leads to Section 144 ex-parte assessment |
| Faceless mode | Yes — submitted through e-Proceedings module |
What Section 142(1) Actually Is
Section 142(1) is the AO’s primary information-gathering tool during scrutiny assessment. It operates in three modes:
Mode 1: Asking a non-filer to furnish a return of income.
Mode 2: Asking the assessee (or anyone) to produce accounts, documents, or statements.
Mode 3: Requesting specific information relevant to the assessment — bank statements, asset details, contract copies, foreign transaction details, and similar items.
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