Tax Litigation and Notice Representation: Income Tax and GST
Receiving a tax notice does not mean the tax department has concluded that you owe additional tax. Most notices are information-seeking or require a response to a proposed adjustment. The critical factor is the quality and timeliness of the response. A well-drafted reply at the first stage often resolves the matter without escalation. A poorly drafted reply or a missed deadline makes the problem worse.
The firm handles notice representation and litigation for both income tax and GST matters, from the assessment stage through to appellate proceedings.
Income Tax Notices and Assessment
Income tax notices are issued under various sections of the Income Tax Act, each requiring a different type of response. The firm handles responses to:
- Section 143(1) intimation: Proposed adjustments to the returned income
- Section 143(2) scrutiny: Detailed examination of the return by the assessing officer
- Section 148 notice: Reassessment of income for a past year
- Section 156 notice: Demand notice for tax, interest, or penalty
- Section 131(1A) summons: Requirement to appear before the assessing officer
- Section 142(1) inquiry: Request for additional information or documents
- Section 270A penalty: Penalty proceedings for under-reporting or misreporting of income
CIT(A) Appeals
If an assessee is aggrieved by an order of the assessing officer, an appeal can be filed before the Commissioner of Income Tax (Appeals) within 30 days of receiving the order. The firm prepares the appeal, drafts the grounds of appeal, compiles the paper book with supporting documents, and represents the case before the CIT(A). Most appeals are resolved at this stage with a favourable or partially favourable order.
ITAT: Income Tax Appellate Tribunal
If the CIT(A) order is not satisfactory, a further appeal can be filed before the Income Tax Appellate Tribunal (ITAT) within 60 days. The firm handles ITAT appeals, prepares the appeal memorandum, and briefs the counsel representing the case. ITAT is the final fact-finding authority, and its orders are binding unless appealed to the High Court on a substantial question of law.
GST Litigation
GST disputes arise from assessments, audits, and enforcement actions by the GST department. The firm handles GST litigation at multiple stages:
- Response to show cause notices (SCNs) and demand orders
- Representation before the adjudicating authority
- Appeal before the Commissioner (Appeals)
- Representation before the Appellate Authority for Advance Ruling (AAAR)
- Filing and representation before the GST Appellate Tribunal (GSTAT)
Faceless Assessment and Appeal Scheme
The income tax department has moved to faceless assessment and faceless appeal proceedings under the Faceless Assessment Scheme, 2019 and the Faceless Appeal Scheme, 2020. Under these schemes, the assessee does not appear in person before the assessing officer. All communication happens through the e-filing portal. The firm handles the entire process electronically, from drafting the response to submitting documents and attending video conferences where required. Faceless proceedings require a different approach to documentation and argument presentation, as there is no opportunity for oral submissions at the assessment stage.