Missed Income Tax Notices:
How to Protect Your Assessment Before Best Judgment Orders

Missed one or more Income Tax notices? Do not assume the case is over - but do not wait for another notice either.

A taxpayer may log in to the e-Filing portal and suddenly find an overdue:

• Section 142(1) notice;
• scrutiny proceeding following a Section 143(2) notice;
• Section 144 show-cause notice; or
• assessment order with an outstanding demand.

These are different stages of the assessment process. The correct response depends on what has happened most recently, not simply on how many notices were missed.

The first step is therefore:

For earlier assessment years such as AY 2025-26, the proceeding continues under the Income-tax Act, 1961 even after the Income-tax Act, 2025 came into force. The Department's transition guidance confirms that proceedings relating to earlier tax years continue under the old Act.

1. Check the e-Filing portal first

Log in and go to:

Pending Actions → e-Proceedings The Income Tax Department's e-Proceedings facility allows taxpayers to view notices and submit responses with supporting documents.

For every item, record:

• Assessment Year;
• section;
• DIN/order number;
• date of issue;
• response deadline;
• current status;
• whether Submit Response is available;
• whether a Section 144 show-cause notice has been issued;
• whether an assessment order has been passed; and
• whether a demand has been raised.

Do not confuse "overdue" with "completed"

A missed response deadline does not by itself prove that an assessment order has already been passed. The portal explains that the response option can become inactive because a CPC response deadline has expired or because an ITBA proceeding has been closed/blocked. In certain cases, an Income Tax Authority can re-enable the submission window while the proceeding remains within the applicable limitation period.

So download the latest notice or order before deciding what to do.

2. Know which stage you are actually in

Section 142(1): information and inquiry

A Section 142(1) notice can require information, accounts, documents or explanations needed for making the assessment.

If it is still pending, the priority is straightforward:

Do not respond only to the easiest questions. Address the entire notice and attach the relevant evidence.

Section 143(2): scrutiny notice

A Section 143(2) notice is a scrutiny notice. It is not the assessment order itself. This distinction matters because a taxpayer may see references to "143(3)" in the portal and assume that the assessment is already completed.

Check the actual document and status.

Section 144: best-judgment assessment

If the taxpayer does not comply with specified requirements, the assessment can move toward a best-judgment assessment under Section 144. Under the faceless assessment procedure, a Section 144 show-cause opportunity is provided before the assessment is completed in the applicable circumstances. If a Section 144 show-cause notice is currently pending, treat it as urgent.

It may still be possible to place your explanation and evidence on record before the assessment is completed.

3. If the proceeding is still open, respond now

Do not wait for the portal to send another reminder.

A useful response should contain:

1. A brief explanation for the delayed response, if necessary.
2. Point-by-point answers to the notice.
3. The correct factual position.
4. Reconciliations for material differences.
5. Supporting documents.
6. Correct tax computation, where relevant.

The Department permits responses and attachments through e-Proceedings and provides a transaction ID after successful submission.

Avoid a one-line apology

"Sorry, I missed the notice. Please reopen it" is not a substantive tax response. If the notice asks why bank receipts differ from turnover or why a deduction was claimed, answer that question with evidence.

4. What if the response button is inactive?

First determine why it is inactive.

The Department identifies different reasons depending on the type of proceeding:

• CPC proceedings may become unavailable after the response due date;
• ITBA proceedings may be closed or blocked by the Income Tax Authority.

In certain cases, the submission window can be re-enabled by the authority while the proceeding remains within its applicable limitation period.

If the response facility is unavailable:

1. download the latest notice/order;
2. check whether an assessment order has already been passed;
3. identify the current procedural stage;
4. check whether the authority can still act on a late response; and
5. if an order has been passed, move immediately to the appropriate post-assessment remedy.

Do not keep attempting the same generic online submission without checking the status.

5. If a Section 144 show-cause notice is pending

This is a critical stage. Your response should focus on why the proposed assessment should not be made on the basis proposed by the Department.

Depending on the issues raised, prepare:

• ITR and computation;
• financial statements;
• books/ledgers;
• bank statements;
• Form 26AS/AIS/TIS reconciliation;
• GST returns, where relevant;
• TDS/TCS reconciliation;
• investment statements;
• invoices and agreements;
• explanations for significant transactions; and
• other documents specifically requested.

Do not make the response purely procedural. The assessment will ultimately turn on the facts, evidence and tax law.

6. If an assessment order has already been passed

This is a different situation.

Once an assessment order is passed, the question is no longer simply:

"How do I answer the old notice?"

You now need to review:

• the assessment order;
• computation sheet;
• notice of demand;
• additions/disallowances;
• interest;
• penalty proceedings, if any; and
• tax credits considered by the Department.

Then determine whether the appropriate remedy is appeal, rectification or another statutory route.

7. Appeal vs rectification: do not confuse them

Rectification

Rectification is designed for a mistake apparent from the record. The Income Tax Department allows eligible rectification requests through the e-Filing portal, including rectification of certain CPC and Assessing Officer orders. It is generally not the right mechanism for re-arguing a complicated factual or legal dispute that requires a fresh assessment of evidence.

Appeal

If you disagree with an assessment order on substantive grounds, an appeal may be the appropriate remedy. For an order appealable before the first appellate authority under the Income-tax Act, 1961, Form 35 is used. The Department states that the normal limitation is 30 days from the relevant statutory date, including the service of the notice of demand for an assessment or penalty appeal.

Missed the appeal deadline?

Do not simply give up. The Department confirms that delay can be condoned in appropriate cases where the taxpayer establishes sufficient/reasonable cause. But a condonation request is not automatic. The reason for delay needs to be properly documented and supported.

8. What if an outstanding demand has already been raised?

First identify why the demand exists.

Review:

• assessment order;
• demand notice;
• computation;
• interest calculation;
• tax-credit details; and
• penalty notices, if applicable.

Then decide whether the demand is:

• correct and payable;
• incorrect because of a factual/computation error;
• affected by a tax-credit mismatch; or
• disputed through an appeal or other remedy.

Do not assume that paying a disputed demand is the only possible response. Equally, do not ignore a genuine demand while deciding what to do.

9. Build a simple chronology

If you have missed several notices, create one timeline.

The exact sections and dates will vary, but the principle is important:

Do not treat five portal entries as five separate tax cases. The latest document usually tells you what requires immediate attention.

10. What should you give your CA?

If you want the case reviewed quickly, provide the complete file rather than isolated screenshots.

Assessment records

• ITR acknowledgement;
• ITR computation;
• notices and orders;
• DINs;
• demand notice;
• assessment computation.

Tax records

• Form 26AS;
• AIS/TIS;
• TDS/TCS details;
• advance-tax challans;
• self-assessment-tax challans.

Financial records

Depending on the case:

• bank statements;
• books and ledgers;
• financial statements;
• GST returns;
• invoices;
• investment statements;
• capital-gain workings;
• property documents;
• foreign-income records.

Most importantly

Give the documents in chronological order.

That makes it much easier to identify:

what was asked → what was missed → what happened next → what remedy is still available.

11. What you should not do

Do not wait for another notice

A missed notice does not reset the statutory process.

Do not assume the assessment is over

Check whether an actual order has been passed.

Do not file a generic apology

Answer the substantive tax questions.

Do not use rectification for every problem

Rectification is for mistakes apparent from the record; substantive disputes may require an appeal.

Do not miss the appeal limitation

If an order has been passed, check the 30-day appeal period immediately.

Do not ignore the demand

Understand the basis of the demand and take the appropriate procedural step.

12. The recovery plan

If you discover overdue Income Tax proceedings today, follow this sequence:

• 142(1)?
• 144 show cause?
• 143(3) order?
• 144 order?
• demand?

The key takeaway

Missing an Income Tax notice is serious, but the situation is not assessed by the number of notices you missed. It is assessed by the current stage of the proceeding.

The correct sequence is:

Check the portal → identify the latest order/notice → determine the procedural stage → respond if proceedings are open, defend the case at the Section 144 stage if applicable, appeal or seek rectification if an order has already been passed.

For earlier assessment years such as AY 2025-26, the Income-tax Act, 1961 continues to govern the proceeding despite the commencement of the Income-tax Act, 2025. The most expensive mistake at this stage is waiting longer.

Missed Income Tax notices?

If you have discovered overdue Section 142(1), scrutiny, Section 144 or assessment proceedings, the case should be reviewed from the complete chronology and current procedural stage.

Anmol Aniket and Associates can assist with:

• Income Tax notice responses
• Section 142(1) and scrutiny proceedings
• Section 144 / best-judgment assessment matters
• Assessment-order review
• Appeal and rectification strategy
• Income-tax demand review
• Representation before tax authorities

Official references

• Income Tax Department - e-Proceedings FAQ and response facility.
• Income Tax Department - Appeals and transition under the Income-tax Act, 2025.
• Income Tax Department - Form 35 and first-appeal procedure.
• Income Tax Department - Rectification procedure.
• Income-tax Act, 1961 - statutory assessment and appeal provisions.