Section 142(1) Inquiry the AO's pre-assessment inquiry.
A Section 142(1) notice is the Assessing Officer's tool to demand return filing, production of accounts and documents, or specific information — before assessment begins. It must be answered carefully because non-compliance triggers best-judgement assessment under Section 144.
Section 142(1) gives the Assessing Officer three powers before assessment — to demand a return where none has been filed, to require production of accounts or documents, and to call for written information in the form of statements on points relevant to the inquiry. Each clause has a different purpose, and the response strategy differs accordingly.
Many taxpayers receive a 142(1) notice because the AO has information from AIS, banks, or third parties suggesting the taxpayer should have filed a return or has unreported income. Others receive it during ongoing assessment to call for specific schedules, party confirmations, or explanations.
Our team handles 142(1) responses end-to-end — understanding the exact clause invoked, drafting the appropriate reply, preparing the documents and statements asked for, and ensuring nothing in your response triggers wider scrutiny. Where return filing is demanded, we prepare and file the return; where documents are sought, we organise and submit them on the portal.
Our 142(1) Response Services
Clause Identification
Identifying whether the notice is under clause (i), (ii), or (iii) of Section 142(1) and the consequences of each.
Return Filing Support
Where return filing is demanded, preparation and filing of the return for the assessment year specified.
Accounts Production
Compilation of books of accounts, ledgers, and supporting documents in the format required by the AO.
Information Statements
Drafting written statements addressing each point on which information has been called for.
Party Confirmations
Obtaining and submitting third-party confirmations for transactions queried by the AO.
Best Judgement Defence
Preventing best-judgement assessment under Section 144 by ensuring full and timely compliance.
Faceless Submission
Filing the reply and documents through the e-Proceedings facility under the faceless assessment scheme.
Follow-Up Notice Handling
Handling subsequent 142(1) and 143(2) notices that may follow the initial inquiry.
How We Respond
Notice Review
Careful study of the notice to determine the clause invoked, scope of inquiry, and deadline.
Information Gathering
Collection of documents, statements, and confirmations required to respond fully.
Drafting & Compilation
Preparation of the reply along with annexures, schedules, and statements in proper format.
Portal Submission
Filing the response on the e-filing portal within the timeline specified in the notice.
Follow-Up
Tracking the proceeding and handling further notices or queries that arise.
Why Timely Compliance Helps
Frequently Asked Questions
Section 142(1) is a pre-assessment inquiry notice issued by the Assessing Officer to demand a return, production of accounts, or written information from the taxpayer.
Non-compliance can lead to best-judgement assessment under Section 144, penalty under Section 271(1)(b), and prosecution under Section 276D in serious cases.
Yes. Under clause (i) of Section 142(1), the AO can require you to file a return for any assessment year, even if you believed no return was required.
The notice specifies a date for compliance — typically 15 to 30 days from issue. You can request more time if genuinely needed.
Not always. Sometimes the matter closes after compliance. In other cases, particularly where unreported income is suspected, it can lead to a 143(2) scrutiny notice.
Got a 142(1) Inquiry Notice?
Don't risk best-judgement assessment or penalty. Get a structured, complete response prepared and filed within the deadline.
Reply to 142(1) Notice or call +91 9819 000 511