Notice Section Guides
Understanding the legal grounds, statutory limitations, and judicial defenses under key Income Tax Act sections.
Show Cause Notice for Reopening Assessment
Introduced via Finance Act 2021. Requires the Assessing Officer to conduct inquiry and provide notice with information suggesting income has escaped assessment. Common defense grounds include lack of approval under Section 151, borrowed satisfaction without independent application of mind, and notice issued beyond limitation.
Notice for Escaped Assessment
Reassessment notice issued following 148A(d) order. Scrutiny Mitra audits whether the notice possesses a valid DIN (Document Identification Number) and whether limitation under Section 149 was observed.
Scrutiny Assessment Order
Detailed examination of return of income. Covers Complete Scrutiny and Limited Scrutiny (CASS). Focuses on documentary substantiation of deductions, turnover mismatch, and business expenditure.
Unexplained Cash Credits & Investments
Deals with unexplained bank deposits, unsecured loans, and share capital. Requires three-prong evidentiary proof: Identity, Creditworthiness, and Genuineness of transactions.
Punitive 78% Tax Rate Defense
High-tax regime applicable to unexplained incomes. Scrutiny Mitra assists in establishing legitimate business nexus to avoid punitive 78% taxation.