When is Notice u/s 142(1) issued?

Notice u/s 142(1) can be issued in both the cases, where you file your income tax return u/s 139 (1) and also in the case you do not file your income tax return u/s 139 (1) and time specified to file such return has been expired.

Why is Notice u/s 142(1) issued?

Notice u/s 142(1) is issued by the Income Tax Department for:

1. Filing of Income Tax Return: If you’ve not filed your return within the specified period of time or before the end of the relevant assessment year, then you might receive Notice u/s 142(1) asking you to file your return.

2. Producing specific accounts and documents: After you’ve filed your income tax return, your Assessing Officer (AO) may ask you to produce such specific accounts and documents as required by him by way of Notice u/s 142(1). For example, you might be required to produce your purchase books, sales books, or proofs of any deductions availed by you, etc.

3. Any other information, notes or workings as desired by the AO: Assessing Officer may require you to furnish in writing and in the prescribed manner the information, notes or workings on specific points as required by him which may or may not form the part of books of accounts. For example, A statement of your assets and liabilities. However, prior approval of the Joint Commissioner is required.

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Non-Compliance of Notice u/s 142(1):


If you don’t comply with Notice u/s 142(1), then:

  • Penalty of Rs 10,000 can be imposed on you u/s 271(1) (b). However, for the A.Y. commencing on or after the 1st day of April, 2017 the penalty shall be levied in Sec 272A(1).

  • Your case can fall under “Best Judgement Assessment” u/s 144 where assessment will be carried out as per the best judgement of the Assessing officer on the basis of all the relevant material gathered by him.

  • You can be prosecuted u/s 276CC for a period of 3 months to 7 years with fine, depending upon your case. In case where you fail to produce such accounts and documents as asked by the AO on or before the date specified on the notice, then you can be prosecuted for upto 1 year with fine u/s 276D.

  • Warrant may also be issued u/s 132 for conducting search.

CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.