Section 143(2) Notice CA in Pune - Scrutiny Selection and Faceless Assessment

Section 143(2) of the Income Tax Act 1961 is the scrutiny selection notice. It is issued by the Assessing Officer when the return filed under Section 139 (or in response to Section 142(1)) is selected for detailed scrutiny assessment under Section 143(3). Importantly, Section 143(2) is NOT itself an inquiry or a demand - it is a NOTIFICATION that the case has been selected for scrutiny. The detailed assessment work that follows happens under Section 143(3) within the Section 144B faceless framework. Section 143(2) must be served within 3 months from the end of the financial year in which the return is furnished (Finance Act 2021 amendment effective 1 April 2021; previously 6 months). This 3-month time limit is jurisdictional - a Section 143(2) served beyond the limit is invalid and the assessment cannot proceed.

Under the Section 144B faceless assessment scheme operational from 13 August 2020, once Section 143(2) is served, the case is allocated by the National Faceless Assessment Centre (NaFAC) at Delhi to a Faceless Assessing Unit located anywhere in India. The Pune assessee no longer interacts with a Pune Aaykar Bhawan AO - instead, all communication happens through the e-filing portal (incometax.gov.in) and registered e-mail. The Section 143(3) order is uploaded to the portal within Section 153 time limit (typically 12 months from end of AY; 21 months for Transfer Pricing cases). For Pune assessees, the appellate path lies through CIT(A) Faceless (under National Faceless Appeal Centre), then ITAT Pune Bench at Plot No. 5, Akurdi, Pune (physical hearing tribunal), and onward to Bombay High Court Principal Seat at Mumbai (150 km inter-city travel from Pune) - a disadvantage Pune assessees face compared to Mumbai-based assessees who enjoy co-located Bombay HC and ITAT Mumbai.

Content is reviewed quarterly for accuracy.

The Pune Region IT has multiple Principal CIT charges covering Pune district. Patron Pune CA pod identifies the issuing charge at intake. Most Section 143(2) cases route through NaFAC Delhi to FAUs anywhere in India under Section 144B faceless framework - Pune assessees do not interact with a Pune-based AO.

Pune Sector-Specific Section 143(2) Patterns:

• Hinjewadi / Kharadi IT employees and consultants: Section 17(2)(vi) ESOP / RSU perquisite mismatch (Form 16 vs AIS), high-value foreign asset Schedule FA disclosure (US RSU holdings), high refund cases under Section 244A and Section 89A foreign retirement account claims (US 401(k) during overseas assignment)
• Pune real-estate sellers (DLF Park / Magarpatta / Hinjewadi / Kharadi): Section 50C stamp duty deeming on appreciating-zone sales, Section 54 / 54F / 54EC reinvestment exemption claims, Maharashtra Ready Reckoner valuation disputes
• PCMC and Hadapsar SMEs: Books-of-accounts mismatch with bank statements, Section 40A(3) cash payment disallowance, Section 43B statutory dues (ESI / PF / GST deposit timing)
• Pune professionals (doctors, lawyers, CAs, architects): Section 44ADA presumptive taxation vs actual books, high-value vehicle / asset depreciation claims, Section 80C / 80D / 80G deduction mismatches
• Talegaon-Chakan auto-and-pharma belt: Section 32 depreciation on capex, Section 35 R&D deduction for pharma, capital-vs-revenue characterisation
• Wakad-Aundh and Koregaon Park HNIs: Capital gains on listed equity / mutual fund redemption, Section 50C residential property sales, family trust Section 161 / 164 matters

Patron Pune pod requires the following documents at engagement onboarding for Section 143(2) handling and Section 144B faceless workflow preparation:

Section A - The Notice:

• Copy of Section 143(2) notice (downloaded from incometax.gov.in with DIN visible)
• Any prior Section 143(1) intimation for the same AY
• Any Section 142(1) questionnaire (precedes 143(2) for non-filers or pre-selection inquiry)

Section B - ITR and Computation:

• ITR-V acknowledgement and full ITR JSON / PDF for the relevant AY
• Detailed computation of income with all schedules
• Tax payment challans, advance tax, self-assessment tax

Section C - Income Verification:

• Form 26AS for the AY (latest version after final TDS deposits)
• AIS and TIS downloads from compliance.insight.gov.in
• Bank statements for all accounts (current, savings, FD, NRE / NRO)
• Form 16 (salary), Form 16A (TDS on other income), Form 16B (TDS on property)

Section D - Pune Sector-Specific Documents:

• Hinjewadi / Kharadi IT employees and consultants: US broker statement (E*TRADE, Fidelity, Morgan Stanley), RSU / ESOP vesting schedule, sale tranches with cost-basis calculation, Form 67 for FTC, Section 89A foreign retirement account documentation
• Pune real-estate sellers (DLF Park / Magarpatta / Hinjewadi / Kharadi): Sale deed, Maharashtra Ready Reckoner certification, purchase deed with indexed cost, Section 54 / 54F new-property purchase deed and payment trail
• PCMC and Hadapsar SMEs: Books of accounts, vendor invoices, cash payment register, Rule 6DD exemption documentation, ESI / PF challans, GST returns
• Pune professionals (doctors, lawyers, CAs, architects): Section 44ADA presumptive vs actual books comparison, professional receipts schedule, fixed asset register, vehicle / equipment depreciation working

Section E - Deduction and Exemption Proofs:

• Section 80C - LIC premium, PPF passbook, ELSS, NSC, tuition fees, home loan principal
• Section 80D health insurance premium, 80G donations with eligibility certificate
• HRA rent receipts, rental agreement, landlord PAN
• Section 80EE / 80EEA home loan interest, Section 80E education loan interest

Section F - Foreign Asset (if applicable):

• Schedule FA disclosure backup - US RSU brokerage account, foreign bank account, foreign immovable property
• DTAA documentation, Form 67 for FTC claims under Section 90
• Form 26AS RBI remittance under Liberalised Remittance Scheme

Share your Section 143(2) notice via WhatsApp at +91 945 945 6700 and Patron Pune pod will revert with a written eligibility opinion, time-bar audit memo and fixed-fee Section 144B workflow quote within 2 hours during business days.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Section 143(2) Notice Pune consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

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Trusted by Pune-based Hinjewadi and Kharadi IT employees and consultants (TCS, Infosys, Cognizant, Capgemini, Persistent and MNC subsidiaries) for Section 143(2) on ESOP / RSU Section 17(2)(vi) perquisite reconciliation, US RSU vesting and sale capital gains characterisation, Schedule FA foreign asset disclosure and Section 89A foreign retirement account claims; Pune real-estate sellers in DLF Park, Magarpatta, Hinjewadi residential and Kharadi appreciating zones for Section 50C and Section 54 / 54F / 54EC defence; PCMC and Hadapsar SMEs for Section 40A(3) Rule 6DD exemptions and Section 43B statutory dues; Talegaon-Chakan auto-and-pharma belt manufacturers for Section 32 depreciation and Section 35 R&D; Pune professionals (doctors, lawyers, CAs, architects) for Section 44ADA presumptive optimisation; and Wakad-Aundh / Koregaon Park HNIs for capital gains and family trust matters.

Pune Section 143(2) Client Coverage Spans: Section 143(2) on ESOP / RSU Section 17(2)(vi), Section 50C real-estate consideration, Section 54 / 54F reinvestment exemption, Section 40A(3) cash payment, Section 43B statutory dues, Section 244A high-refund matters, Section 44ADA presumptive, Schedule FA foreign asset disclosure, Section 89A foreign retirement, Section 32 depreciation and Section 35 R&D. Notice-handling coverage spans the full Section 143(2) to Section 143(3) Section 144B faceless workflow plus CIT(A) Faceless Appeal, ITAT Pune Bench at Akurdi and Bombay HC Section 260A at Mumbai Principal Seat.

4-Office City Trust Signal: With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting serves businesses and individuals across India - both in-person and remotely. The Pune office is the hub for Pune Section 143(2) Section 144B faceless handling; Mumbai office provides Bombay HC coordination at 150 km inter-city for Section 260A and writ matters.

Section 143(2) defence pairs naturally with several Patron service lines - all delivered by the same Pune CA pod for a single point of accountability.

• Income Tax Notice CA Pune: Parent Pune city hub covering all income-tax notices including Section 143(2), Section 148 and Section 156.
• Section 143(2) Notice Mumbai: Sibling Mumbai city page - LARGEST IT Region in India - ITAT Mumbai Bench co-located.
• Section 143(2) Notice Delhi: Sibling Delhi city page - NaFAC HQ in Delhi - same Section 144B faceless workflow discipline.
• Section 143(2) Notice Gurugram: Sibling Gurugram city page - Aayakar Bhawan HSIIDC + CCIT Panchkula + NWR Chandigarh.
• ITR for Companies: Corporate ITR filing - relevant for Pune corporate Section 143(2) Complete Scrutiny matters.
• Tax Audit: Section 44AB tax audit for turnover above Rs 1 crore (business) / Rs 50 lakh (profession) - clean tax audit reduces Section 143(2) trigger probability.
• GST Notice CA Pune: If you also have a GST notice in Pune - sibling Pune service handled by the same office.

Governing Act: Income Tax Act, 1961. Per Section 536(2)(c) of the Income Tax Act 2025, the 1961 Act continues for assessment proceedings of AY 2026-27 and earlier even after 1 April 2026 when IT Act 2025 takes effect (Section 143(2) becomes Section 271 selection notice; Section 143(3) becomes Section 271 assessment order).

Section 143(2) IT Act 1961 (Income Tax Department): Scrutiny selection notice. NOT itself an inquiry or demand.

Section 143(2) Proviso (Time Limit): Service within 3 months from end of FY of ITR furnishing (Finance Act 2021 amendment effective 1 April 2021; previously 6 months). Jurisdictional limit.

Section 143(3) IT Act 1961: Scrutiny assessment order; under Section 144B faceless framework from 13 August 2020.

Section 144B IT Act 1961 (e-Filing Portal): Faceless Assessment Scheme - NaFAC Delhi allocates cases to FAUs across India. All communication through e-filing portal.

Section 142(1) IT Act 1961: Inquiry / requisition during Section 143(3) workflow - FAU issues multiple questionnaires.

Section 144 IT Act 1961: Best judgment assessment - where assessee fails to comply with Section 142(1) / 143(2). Adverse default route.

Section 144C IT Act 1961 - DRP: Dispute Resolution Panel for eligible assessees (foreign companies, TP cases); draft-order objections within 30 days; DRP order within 9 months.

Section 153 IT Act 1961: Assessment time limit - 12 months from end of AY; 21 months where Section 92CA TP reference made.

Section 154 IT Act 1961: Rectification of mistake apparent from record - alternative to appeal for arithmetic errors.

Section 246A IT Act 1961: CIT(A) appeal jurisdiction for Section 143(3) orders; 30-day window from order; 20 percent pre-deposit.

Section 253 IT Act 1961: ITAT second-appeal jurisdiction; 60 days from CIT(A) order; ITAT Pune Bench at Plot No. 5, Akurdi, Pune handles Pune appeals (physical hearing tribunal).

Section 260A IT Act 1961: High Court appeal on substantial question of law from ITAT order; 120 days; Bombay HC Principal Seat at Mumbai handles Pune matters (150 km inter-city travel).

Section 270A IT Act 1961: Penalty for under-reporting (50 percent of tax) or mis-reporting (200 percent) of income.

Section 270AA IT Act 1961: Immunity from Section 270A penalty where conditions met (voluntary disclosure, no concealment, tax + interest paid within prescribed window).

Section 17(2)(vi) IT Act 1961: ESOP / RSU perquisite at vesting fair-market-value - common Hinjewadi IT trigger.

CASS (Computer-Assisted Scrutiny Selection): CBDT annual instruction sets CASS parameters, scrutiny categories (Limited / Complete / Compulsory) and procedural workflow.

Faceless Appeal Scheme 2021: Effective 6 September 2021; National Faceless Appeal Centre allocates CIT(A) appeals.

IT Act 2025 Transition (1 April 2026): Section 143(2) becomes Section 271 (selection); Section 143(3) becomes Section 271 (assessment); faceless scheme provisions carried forward.

Penalty and Process Snapshot:

• Section 143(2) issuance deadline: 3 months from end of FY of ITR filing (jurisdictional)
• Section 270A under-reporting penalty: 50 percent of tax; mis-reporting: 200 percent
• Section 144 best-judgement: typically 3 to 5x higher demand than properly defended scrutiny
• Section 144C(2) DRP objections: 30 days from draft order (eligible assessees)
• Section 153 order limit: 12 months from end of AY (21 months for TP)
• Section 246A appeal pre-deposit: 20 percent of disputed demand
• ITAT Pune Bench: second appeal at Plot No. 5 Akurdi (physical hearing)
• Bombay HC Mumbai: 150 km inter-city travel for Section 260A and writ

Deadline: Once Section 143(2) is served, the case is allocated by NaFAC Delhi to a Faceless Assessing Unit anywhere in India within days. Section 142(1) questionnaire windows of 15 to 30 days follow. Missing any window allows Section 144 best-judgement assessment with adverse additions.

Pune Penalty Exposure: For a Rs 1 crore Pune Section 143(3) addition under Complete Scrutiny, Section 270A penalty exposure ranges from Rs 50 lakh (under-reporting 50 percent of tax) to Rs 2 crore (mis-reporting 200 percent of tax). Most Pune assessees are unaware of the 3-month Section 143(2) proviso time-bar defence.

Time-Bar Defence: If your Section 143(2) was issued beyond the 3-month proviso window from end of FY of ITR filing, Patron files Article 226 writ before the Bombay HC at Mumbai Principal Seat (150 km inter-city from Pune). Bombay HC has consistent precedent striking down time-barred Section 143(2) notices.

Action: Forward your Section 143(2) notice to Patron Pune. Call +91 945 945 6700 or WhatsApp the notice copy. Free 30-minute notice review with Section 143(2) time-bar check, CASS category decode and Pune sector-specific defence plan. We respond within 2 hours during business days.

A Section 143(2) scrutiny selection notice in Pune is the AO notification that your case has been selected for Section 143(3) assessment under the Section 144B faceless framework. Section 143(2) is NOT itself a demand or inquiry; it is a selection notice. The Section 144B workflow that follows operates through NaFAC Delhi allocation to a Faceless Assessing Unit anywhere in India - Pune assessees do not interact with a Pune-based AO and conduct the entire scrutiny remotely through the e-filing portal.

For Pune assessees, the appellate path lies through CIT(A) Faceless under National Faceless Appeal Centre, then ITAT Pune Bench at Plot No. 5, Akurdi, Pune (physical hearing tribunal), and onward to Bombay High Court Principal Seat at Mumbai (approximately 150 km inter-city travel). Unlike Mumbai assessees who benefit from co-located ITAT Mumbai and Bombay HC, Pune assessees factor inter-city travel cost for Bombay HC Section 260A appeals and Article 226 writs.

Patron Accounting LLP runs a dedicated Pune Section 143(2) pod with sector-specific defence playbooks for Hinjewadi / Kharadi IT ESOP / RSU Section 17(2)(vi), Pune real-estate Section 50C and Section 54 / 54F, PCMC SME Section 40A(3) and Section 43B, Pune professionals Section 44ADA, and Wakad-Aundh / Koregaon Park HNI capital gains. Pricing Rs 25,000 to Rs 50,000 per matter; TP / international tax priced separately at Rs 1.5 lakh to Rs 7.5 lakh. Call +91 945 945 6700 | WhatsApp +91 945 945 6700 | Email sales@patronaccounting.com. Free 30-minute notice review with Section 143(2) time-bar check.