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For scrutiny assessments governed by the current three-month rule in Section 143(2) of India’s Income-tax Act, 1961, the notice must be issued within three months after the end of the financial year in which the return was furnished. A notice outside the applicable deadline may give you grounds to challenge the resulting assessment, but whether it can be set aside depends on the assessment year, the notice and service record, and the procedural history.
What is the Section 143(2) notice time limit?
Section 143(2) applies when a taxpayer has furnished a return under Section 139 or in response to a notice under Section 142(1), and the tax authority considers scrutiny necessary or expedient. Under the three-month version of the proviso, the notice cannot be issued after three months from the end of the financial year in which the return was furnished. The clock is tied to the financial-year end, not simply to the date you filed the return. Read the provision and confirm the version that applies to your assessment year.
The Act has used different time limits in earlier versions. Do not apply the current three-month period automatically to an older assessment year; check the statutory text applicable to that year. A tribunal decision illustrates application of the three-month proviso to the dates in that particular case, but it does not establish a universal outcome for every notice dispute. See the tribunal decision.
What happens if the department misses the deadline?
If the notice was issued after the statutory deadline that applies to your assessment year, the resulting scrutiny assessment may be vulnerable to challenge. The Supreme Court has recognized the required notice’s importance to the assessment process. In Commissioner of Income Tax v. Laxman Das Khandelwal (2019), it held that Section 292BB does not cure the complete absence of a notice, even if the taxpayer participated in the proceedings. The Court put it plainly: “The Section does not save complete absence of notice.” Read the Supreme Court judgment.
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That ruling should not be stretched into a claim that every late notice or disputed service automatically voids an assessment. It distinguishes no notice at all from certain defects in serving a notice that was issued. Whether a late notice supports a successful challenge depends on the applicable statutory version and the facts and procedure in your case.
Was there no notice, a late notice, or a service problem?
These are separate questions. The Supreme Court’s decision directly addresses the consequence of complete absence and the limit of Section 292BB; it does not decide every situation involving a notice issued late or an argument over service.
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| Question | Why it matters |
|---|---|
| Which assessment year and statutory version apply? | Earlier versions of Section 143(2) may have different deadlines, so the correct period must be identified first. |
| Was a notice issued within that deadline? | The issue date must be compared with the deadline under the applicable version. A late issue may provide a ground to challenge the assessment. |
| Was the notice served, and what evidence records service? | Issuance and service are distinct. Section 292BB concerns certain service infirmities; it does not cure complete absence of notice. |
| When was a service objection raised? | The timing of an objection in relation to completion of assessment may matter to the procedural analysis. |
Does the new Income-tax Act change the rule for an earlier assessment year?
The Income Tax Department says scrutiny assessments for AY 2026–27 or earlier continue under the Income-tax Act, 1961. For those years, identify the applicable version of Section 143(2) rather than assuming the Income-tax Act, 2025 changes the rules for an earlier assessment year. Check the Department’s guidance.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What records should you check?
For a practical review, gather the return filing acknowledgement, the Section 143(2) notice, available issue and service details, portal history, and the assessment order. Compare the notice’s issue date with the deadline under the version applicable to your assessment year, and note any service objection and when it was raised. A qualified Indian tax professional can assess how those facts affect a challenge in your case.
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