Income tax notices carry two different clocks. The first is the date printed in the notice itself, by which you must reply. The second is the outer limitation the law fixes for the department — how long it has, after the end of the assessment year, to complete a scrutiny, a best judgement assessment or a reopening. Knowing both tells you whether a notice is timely and whether you are at risk of an ex parte order.
When this matters
This matters to any assessee who has received a scrutiny notice, a reopening notice for an earlier year, a best judgement assessment for non-filing, or an order they wish to appeal. It matters most where the response date in the notice has already passed or is very close, because the consequence of missing it is decided on the department's own material. Our tax practice advises on limitation and appeals, and the tax formats library has the draft replies and condonation applications.
The limitation framework
The statute fixes the outer limit for each kind of proceeding, and it is counted from the end of the relevant assessment year rather than from the date of the notice.
- Processing under section 143(1). A return is processed by the Centralised Processing Centre, and the intimation can be corrected by rectification within the prescribed window.
- Scrutiny assessment under section 143(3). Once a return is selected and a notice under section 143(2) is issued, the assessment must be completed within the period the statute prescribes, counted from the end of the assessment year. The period differs depending on the year and the kind of case.
- Best judgement assessment. Where a return is not filed or a notice is not complied with, the officer may assess the income on the basis of the material available, and the order must still be made within the prescribed limitation.
- Reopening under section 148. Reopening reaches only a limited number of past years, and the reach is longer only where the escaped income exceeds the threshold the statute specifies. Recent reopens are preceded by an enquiry under section 148A, and the order under that section must be passed before the notice is issued.
- Appeals. An appeal to the Commissioner of Appeals (Appeals) must be filed within the period the statute allows from the date of service of the order, and a second appeal to the Income Tax Appellate Tribunal has its own period.
What happens if the deadline passes
- Where you do not reply to a scrutiny or reopening notice, the officer may pass the order on the material already on record — an ex parte order is not invalid merely because you did not appear, but it is much more likely to go against you.
- Where a demand is raised and not disputed, it becomes recoverable and interest runs on it from the date of the demand.
- Where a return is not filed and the notice is ignored, a best judgement assessment follows, and the assessed figure can be appealed but the burden shifts to you to show it is wrong.
- Penalty proceedings can be initiated separately for under-reporting or misreporting, on their own timeline.
Condonation of delay
Where a deadline was missed for a genuine reason — illness, non-receipt of the notice, a death in the family, or a portal failure — the delay can be condoned. In an appeal, you file the appeal with an application for condonation explaining the reason for the delay and supporting it with evidence such as medical records, a postal record or the portal's own error message. The authority then decides whether the explanation is sufficient. Condonation is not a matter of right, so the explanation must be specific and documented rather than general.
The appeal windows
The first appeal against an assessment, a penalty, or a demand lies before the Commissioner of Appeals (Appeals) within the period the statute allows, and the order of that authority can be carried to the Income Tax Appellate Tribunal in a second appeal. Where the challenge is to the very jurisdiction to reopen, or to a violation of natural justice, a writ petition before the High Court may also be available, though that route is used sparingly alongside the appellate remedy.
The record-keeping habit that protects you
- File every notice received, with the acknowledgement number and the date of issue, in one place for each assessment year.
- Keep the return, the computation, Form 16/16A, Form 26AS and the AIS for each year together, so a notice for that year can be answered from one folder.
- Note the response date in the notice on a calendar the moment it is received, and diarise a reminder a week earlier.
- Keep the proof of every online submission — the acknowledgement and the uploaded PDF — because a reply that cannot be proved is treated as not filed.
- Update your email and mobile on the e-filing portal so notices reach you electronically and are not missed. Related reading is on our blog, and you can ask us to review a notice's timelines.
Common questions
Does the department lose the power to act once the limitation is over?
Yes — an assessment or reopening made beyond the period the statute allows is without jurisdiction and can be challenged on that ground alone. The limitation runs from the end of the assessment year, so a notice can be timely even if it reaches you years after you filed.
I received the notice late and the reply date has passed. Is it over?
Not necessarily. Reply at once and explain the delay, and ask for the delay to be condoned. Where an order has already been passed, an appeal with a condonation application can still be filed if the appellate limitation allows it.
Can I get more time to reply to a notice?
You can request an adjournment in writing or through the portal, and it is often granted where the request is for a specific, reasonable period and shows you are engaging. The request and the response should both be kept on record.
How long after I file can a notice come?
An intimation under section 143(1) usually arrives within months of filing. A scrutiny, best judgement or reopening notice can come years later, but always within the limitation the statute fixes for that kind of proceeding, counted from the end of the assessment year.
FileX Advocates & Legal Consultants, Kolkata, advises on limitation, applies for condonation and appears in appeals on behalf of assessees. Call +91 7439811422 or WhatsApp us for a free first consultation.