Income Tax Assessment and Litigation Services in India

Received an income tax notice, facing scrutiny assessment, dealing with reassessment proceedings or planning to appeal against an income tax order? The manner in which you respond, organise evidence and present your legal position can significantly affect the outcome of your case.

EzyBiz India Consulting LLP provides professional Income Tax Assessment and Litigation Services in India for Indian companies, foreign-owned subsidiaries, multinational businesses, LLPs, partnership firms, NRIs, professionals and individual taxpayers.

Our Chartered Accountant-led services cover income tax notice replies, scrutiny and faceless assessments, reassessment, penalty proceedings, rectification, stay of tax demand, appeals before JCIT(A)/CIT(A) and representation before the Income Tax Appellate Tribunal (ITAT). For High Court and Supreme Court proceedings, we assist with case analysis and coordination with appropriate legal counsel.

We combine income-tax law, accounting expertise and documentary evidence to prepare structured submissions, address disputed additions and assist taxpayers throughout assessment and appellate proceedings.

Need assistance with an income tax notice or assessment order? Contact EzyBiz India at anil@ezybizindia.in or call +91 98992 17778 to discuss your matter.

1. Income Tax Assessment and Litigation Services at a Glance

What Do Income Tax Assessment Services Include?

Income tax assessment services involve professional assistance during inquiries, scrutiny, reassessment, verification of income and examination of claims made in a tax return. Depending on the proceeding, the work may require review of financial statements, books of account, tax computations, documentary evidence and statutory notices.

What Do Income Tax Litigation Services Include?

Income tax litigation services involve evaluating and challenging disputed additions, disallowances, penalties and tax demands through the appropriate statutory forums. These services may include drafting appeals, preparing Statements of Facts and Grounds of Appeal, compiling case law, submitting evidence and representing taxpayers before the relevant authorities.

Our Assessment and Litigation Support

2. Who Can Benefit from Our Income Tax Litigation Services?

Indian Companies and Business Enterprises

We assist private limited companies, public companies, LLPs, partnership firms, manufacturers, exporters, traders and service providers facing income tax assessments or disputes.

Business assessments frequently involve turnover, business expenditure, depreciation, deductions, TDS, loans, share capital, unexplained credits, financial-statement differences and related-party transactions.

Foreign-Owned Subsidiaries and Multinational Companies

Foreign-owned Indian subsidiaries may face additional issues involving intercompany transactions, transfer pricing, withholding tax, international tax provisions, related-party payments, foreign remittances and treaty interpretation.

EzyBiz assists with coordinating the accounting, domestic tax and international tax aspects of such proceedings. Related assistance is available through our Direct Tax Advisory Services.

Individuals, Professionals and NRIs

We also assist individuals, company directors, entrepreneurs, professionals, NRIs and high-net-worth taxpayers in disputes relating to capital gains, property transactions, salary and professional income, foreign income, investments, cash deposits and discrepancies in AIS or Form 26AS.

3. Income Tax Notice Reply and Departmental Proceedings

What Should You Do After Receiving an Income Tax Notice?

The first step is to identify the nature of the notice, relevant tax or assessment year, statutory provision, response deadline and information required by the Income Tax Department.

The notice should be compared with the filed return, income computation, books of account, tax audit report, AIS, Form 26AS and relevant supporting documents.

For step-by-step guidance, read our article on How to Respond to an Income Tax Notice in India.

Types of Income Tax Notices Requiring Professional Attention

Depending on the applicable law and tax year, taxpayers may receive notices relating to inquiries before assessment, scrutiny, reassessment, defective returns, outstanding demands, penalties and verification of transactions.

Common provisions under the Income-tax Act, 1961 include sections 142(1), 143(2), 148, 148A, 156 and 270A. The corresponding framework under the Income-tax Act, 2025 must be considered for proceedings governed by the new law.

Our separate guide explains the Types of Income Tax Notices in India.

How EzyBiz Prepares Income Tax Notice Replies

We examine the factual and legal issues, identify supporting evidence, reconcile financial information and prepare clear responses to each question raised by the Department.

Our submissions may include reconciliations, transaction-wise schedules, bank statements, confirmations, invoices, contractual documents and relevant judicial precedents.

Where the available response time is insufficient, we assess whether a request for extension or adjournment can be made under the applicable procedure.

4. Income Tax Scrutiny Assessment Services

What Is Scrutiny Assessment?

Scrutiny assessment is a detailed examination of a taxpayer’s return and related information by the Income Tax Department. It may involve verification of income, expenditure, deductions, exemptions, transactions or other matters relevant to the assessment.

Under the Income-tax Act, 1961, scrutiny proceedings commonly involve notices under section 143(2), information requests under section 142(1) and assessment under section 143(3), where applicable.

Common Issues Examined During Scrutiny

• Turnover differences between financial statements, GST returns and income tax returns
• Business expenses and supporting invoices
• TDS and Form 26AS mismatches
• Unsecured loans and share capital transactions
• Cash deposits and unexplained credits
• Depreciation, provisions and disallowances
• Capital gains and property transactions
• Related-party and cross-border transactions

Our Scrutiny Assessment Representation Services

We prepare issue-wise replies, verify books of account, prepare reconciliations, compile evidence and assist during hearings and assessment proceedings.

Read our comprehensive guide on Income Tax Scrutiny Assessment under the E-Assessment Framework.

5. Faceless Income Tax Assessment and E-Assessment Services

How Does Faceless Assessment Work?

Faceless income tax assessment generally involves electronic communication, submission of information, document verification and assessment proceedings through the prescribed electronic framework.

Taxpayers should monitor notices and communications on the Income Tax Department e-Filing Portal and comply with the deadlines stated in the proceedings.

Responding to Faceless Assessment Notices

We assist with review of electronic notices, preparation of supporting documentation, uploading of responses, show-cause replies and requests for hearings where permitted.

Our focus is to make every important factual assertion traceable to the supporting document and relevant submission.

For procedural guidance, see our Analysis of the E-Assessment Procedure and Faceless Assessment FAQs.

6. Income Tax Reassessment and Section 148 Proceedings

When Can Reassessment Proceedings Arise?

Reassessment concerns income alleged to have escaped assessment. Such proceedings require examination of the applicable statutory conditions, the information relied upon, the relevant period and the procedural safeguards available to the taxpayer.

For older tax years, provisions of the Income-tax Act, 1961, including sections 147, 148 and 148A where applicable, may continue to govern the proceeding. For tax years governed by the Income-tax Act, 2025, the relevant new provisions must be examined.

Reviewing the Validity of a Reassessment Notice

Depending on the facts and applicable law, we examine jurisdiction, limitation, statutory approvals, information relied upon by the authority, service of notice and opportunity to respond.

Procedural objections must be considered alongside the underlying merits and not as a substitute for explaining the actual transactions.

Preparation of Reassessment Replies

Our work may involve studying the original assessment history, reviewing information relied upon by the Department, preparing transaction reconciliations and drafting factual and legal submissions.

Where reassessment results in disputed additions or an adverse order, we assess available rectification, stay and appellate remedies.

7. Best Judgment and Ex Parte Income Tax Assessments

When Can Best Judgment Assessment Arise?

Best judgment assessment may arise in circumstances specified by law, including certain failures to comply with notices or furnish necessary information.

Such proceedings can have serious consequences where the Department completes an assessment without considering the taxpayer’s full explanation or supporting evidence.

Remedies After an Ex Parte Assessment Order

We examine the assessment order, reasons for non-compliance, additions made, evidence already on record and the relevant appeal deadlines.

Depending on the case, possible remedies may include rectification of an apparent error, statutory appeal, an application for stay of demand and a request for admission of additional evidence in accordance with the applicable rules.

8. Income Tax Penalty Proceedings and Rectification

Income Tax Penalty Notice Reply Services

Penalty proceedings require separate consideration of the statutory allegation, evidence, explanations and relevant legal conditions.

A tax addition does not automatically justify every penalty proposed by the Department. The correct statutory provision, applicable year, nature of default and available defences must be examined.

We assist with preparation of penalty replies, review of supporting records, legal research and representation before the appropriate authorities.

Rectification of Assessment and Tax Computation Errors

Where an order contains a mistake apparent from the record, rectification may be an appropriate remedy.

Examples can include apparent arithmetic errors, incorrect tax credit, identifiable computational mistakes or other errors satisfying the applicable statutory conditions.

Rectification is generally not a substitute for an appeal involving disputed factual findings or complex legal interpretation.

9. Income Tax Demand Notice, Stay and Recovery Proceedings

What Happens After an Income Tax Demand Notice?

An income tax demand may arise after an assessment, reassessment, penalty order or other statutory proceeding. The demand should be reviewed against the underlying order, computation, tax payments and available credits.

The taxpayer should identify the disputed amount, undisputed amount, interest calculation and applicable payment or appeal deadlines.

Can Recovery of Income Tax Demand Be Stayed?

Filing an income tax appeal does not automatically stay recovery of the disputed demand.

Depending on the facts, taxpayers may need to submit a separate stay application addressing the merits of the dispute, financial circumstances, recovery position and other relevant factors.

Read our specialist guide on How to Obtain Stay of Income Tax Demand After an Assessment Order.

How EzyBiz Assists With Tax Demand Disputes

We assist with reconciliation of outstanding demand, review of assessment additions, preparation of stay applications, supporting financial evidence and representation in recovery-related matters.

10. Income Tax Appeals Before JCIT(A) and CIT(A)

Appeal Against an Income Tax Assessment Order

Where an assessment or penalty order contains disputed findings, additions or disallowances, a statutory appeal may be available subject to the applicable provisions.

It is important to examine the service date of the relevant order or notice of demand, prescribed limitation, appealability of the order and any related recovery proceedings.

Read our detailed guide on Income Tax Appeal Against an Assessment Order in India.

Preparation of Grounds of Appeal and Statement of Facts

EzyBiz assists with identifying disputed issues, preparing the Statement of Facts, drafting Grounds of Appeal, organising evidence and preparing written submissions based on statutory provisions and applicable judicial decisions.

Where additional evidence is required, its admissibility must be examined under the relevant procedural rules.

Form 35 and Form 99 — Which Applies?

The correct appellate form depends on the law governing the underlying proceeding. Form 35 may continue to apply to proceedings governed by the Income-tax Act, 1961, while Form 99 is prescribed for relevant first appeals under the Income-tax Act, 2025.

The Income Tax Department Form 99 User Manual provides official guidance for applicable appeals under the new framework.

Faceless Income Tax Appeals

First appeals may be processed through the applicable electronic or faceless appellate framework. Our services include written submissions, evidence compilation, procedural assistance and hearing preparation.

For additional information, read our article on E-Appeal Schemes in Income Tax.

11. ITAT Appeal and Tax Tribunal Representation Services

Appeals Before the Income Tax Appellate Tribunal

The Income Tax Appellate Tribunal is an important forum for adjudicating eligible income tax appeals involving factual and legal disputes.

ITAT matters require careful review of the order under challenge, grounds raised, relevant records and judicial precedents.

Our ITAT Appeal Assistance

• Review of first appellate orders and assessment records
• Preparation of appeal documents and Grounds of Appeal
• Cross-objection support where applicable
• Preparation of chronology, paper books and evidence indexes
• Compilation of judicial decisions and written submissions
• Hearing preparation and authorised representation

For information about the Tribunal and its proceedings, visit the official Income Tax Appellate Tribunal website.

High Court and Supreme Court Matters

Further proceedings before the High Court or Supreme Court depend on the applicable statutory provisions and legal grounds.

For such matters, EzyBiz assists with the preparation and analysis of tax records, legal and factual briefings and coordination with appropriately qualified advocates and senior counsel.

12. Complex Corporate Tax Disputes and Specialist Assessments

Unexplained Cash Credits and Allegedly Bogus Transactions

Assessments involving allegedly fictitious purchases, accommodation entries, share capital, unsecured loans or unexplained credits can require substantial factual verification.

Relevant documentation may include purchase invoices, transportation records, bank statements, supplier confirmations, ledger accounts, agreements and evidence of actual commercial transactions.

Our technical article discusses Income Tax Assessment in Cases of Fictitious or Bogus Transactions.

International Tax and Transfer Pricing Disputes

Foreign-owned Indian subsidiaries and multinational groups may face disputes concerning transfer pricing adjustments, related-party transactions, withholding tax, permanent establishment, treaty claims and cross-border services.

These matters require review of contracts, tax positions, supporting financial records and, where relevant, transfer pricing documentation.

Tax Assessment Matters Involving PMLA-Related Issues

Certain complex transactions may create overlapping income tax and financial-crime-related concerns. The scope of each statute and proceeding must be examined separately.

Read our specialist article on Income Tax Assessment and PMLA in India.

Where a matter involves potential criminal liability or proceedings under other specialised laws, advice from appropriately qualified legal counsel should be obtained.

13. Income-tax Act, 1961 and Income-tax Act, 2025 — Which Law Applies?

Income-tax Act, 2025 Effective from 1 April 2026

The Income-tax Act, 2025 came into force on 1 April 2026, replacing the Income-tax Act, 1961, subject to the applicable transitional and saving provisions.

Proceedings relating to earlier tax periods can continue under the previous statutory framework. Consequently, taxpayers may encounter references to both Acts during the transition.

The CBDT press release on the commencement of the Income-tax Act, 2025 confirms the commencement of the new legislation.

Important Assessment and Appeal Provisions

This table provides a broad reference only. The new provisions are not necessarily direct substitutes for individual provisions of the previous Act. The applicable tax year, transition rules and statutory conditions must be examined before relying on a section or procedure.

14. Our Approach to Income Tax Assessment and Litigation

Step 1 — Initial Case Review and Risk Assessment

We review the notice or order, tax return, supporting documents, relevant tax year, statutory framework, financial exposure and available response time.

Step 2 — Evidence Collection and Financial Reconciliation

We examine financial statements, ledgers, tax computations, tax audit reports, bank statements, AIS, Form 26AS and transaction documents to identify discrepancies and prepare supporting reconciliations.

Step 3 — Written Submissions and Legal Research

Based on the issues identified, we prepare clear factual responses, relevant legal submissions, documentary annexures and judicial-reference material where required.

Step 4 — Representation and Procedural Compliance

We assist with filing responses through the applicable portal, tracking notices, preparing for hearings and making further submissions within prescribed procedures.

Step 5 — Order Review and Next Steps

After receipt of an order, we review the findings, additions, disallowances and consequential tax demand. Where appropriate, we assist with rectification, stay of demand, appeals or other available remedies.

Documents Commonly Required

• Copy of notice, show-cause notice or assessment order
• Relevant income tax returns and computations
• Financial statements and tax audit reports
• AIS, TIS and Form 26AS
• Books of account and ledger extracts
• Bank statements, invoices, agreements and confirmations
• Previous replies and supporting submissions
• Previous assessment and appellate orders
• Challans, demand details and tax-credit records
• Other evidence relevant to the disputed transactions

The exact document requirements depend on the case. Not every taxpayer will need to provide every item listed above.

Facing an active assessment, tax demand or appeal deadline? Our team can review the matter and identify the documents and procedural steps relevant to your case.

15. Why Choose EzyBiz for Income Tax Assessment and Litigation?

Chartered Accountant-Led Tax and Financial Analysis

Tax disputes frequently require an understanding of both the Income-tax law and the accounting treatment of the underlying transaction.

EzyBiz India Consulting LLP combines tax advisory, financial reporting and regulatory experience to analyse disputes involving accounting records, commercial transactions and statutory provisions.

Experience With Corporate and Cross-Border Matters

Our services are particularly relevant to Indian businesses, foreign-owned subsidiaries and taxpayers dealing with complex financial transactions, related-party arrangements and international tax considerations.

Evidence-Based and Issue-Wise Representation

Our approach emphasises clear explanations, financial reconciliations, supporting documents, relevant legal provisions and properly organised written submissions.

Continuity from Assessment to Appeal

Where required, we support clients from the initial notice and scrutiny proceedings through to order review, stay applications, first appeals and ITAT matters.

For broader tax advisory and compliance assistance, explore our Direct Tax Services in India.

16. Frequently Asked Questions on Income Tax Assessment and Litigation

What should I do immediately after receiving an income tax notice?

Check the notice type, tax year, response deadline and information requested. Review the notice against your return, tax computation and supporting records before preparing a response.

Can a Chartered Accountant represent me during income tax assessment?

A Chartered Accountant may assist and represent taxpayers in eligible proceedings under the applicable statutory authorisation and procedural rules.

Can EzyBiz assist with faceless income tax assessment?

Yes. We assist with electronic notice review, document compilation, issue-wise responses, show-cause submissions and relevant procedural representation.

What happens if I do not respond to an income tax notice?

Non-compliance can result in adverse procedural or assessment consequences, depending on the notice and applicable provisions. The taxpayer should immediately examine whether a response, extension request or other remedy remains available.

Can I challenge an income tax assessment order?

Depending on the type of order and applicable statutory provisions, taxpayers may be able to seek rectification, file an appeal or pursue another available remedy. Time limits should be reviewed promptly.

Does an income tax appeal automatically stop recovery of demand?

No. Filing an appeal does not automatically stay recovery. A separate stay application or other protective remedy may be necessary.

What is the usual time limit for filing a first income tax appeal?

The general statutory period is commonly 30 days from the relevant prescribed event, such as service of a notice of demand or communication of an order, depending on the appeal. The applicable provision and possibility of condonation should be checked for the specific case.

Can additional evidence be submitted during appeal?

Additional evidence may be admitted in circumstances permitted by the relevant appellate procedure. Admission is not automatic, and the applicable requirements should be examined.

Can EzyBiz represent clients before the ITAT?

Yes. EzyBiz assists in eligible ITAT matters with appeal preparation, paper books, written submissions, case-law compilation, hearing preparation and authorised representation.

Which Income Tax Act applies to proceedings in 2026?

The Income-tax Act, 2025 applies from 1 April 2026, subject to transition provisions preserving the earlier Act for relevant previous tax periods and proceedings. The applicable law must be determined by examining the underlying tax year and the nature of the matter.

Does EzyBiz assist foreign-owned companies with tax disputes in India?

Yes. We assist foreign-owned Indian subsidiaries and multinational groups with relevant domestic tax assessments, related-party transaction issues and cross-border tax matters.

How much do income tax litigation services cost?

Professional fees depend on the notice or order, disputed issues, documentation, number of tax years, stage of proceedings, complexity and representation required. The proposed scope and professional fees can be discussed after an initial review.

Related Tax and Litigation Services

• How to Respond to an Income Tax Notice in India
• Types of Income Tax Notices in India
• Income Tax Scrutiny Assessment
• E-Assessment Procedure under Income-tax Law
• Faceless Income Tax Assessment FAQs
• Different Types of Income Tax Assessment
• Stay of Income Tax Demand
• Income Tax Appeal Against Assessment Order
• Income Tax E-Appeal Scheme
• Assessment Involving Bogus Transactions
• Income Tax Assessment and PMLA
• Direct Tax Advisory Services

Discuss Your Income Tax Assessment or Litigation Matter

Whether you are dealing with an income tax notice, scrutiny, reassessment, penalty order, outstanding tax demand or appeal, EzyBiz India can assist you in reviewing the matter and preparing an appropriate response strategy.

EzyBiz India Consulting LLP
New Delhi, India
Email: anil@ezybizindia.in
Phone: +91 98992 17778