Section 35(3) Income Tax Notice Received via Email — What You Must Do Immediately

Arjun Mehta, a small business owner based in Indore, had been running a modest trading firm for several years. Around 18 March 2025, he received an email from the Income Tax Department carrying a notice under Section 35(3) of the Income Tax Act, 1961. The notice flagged that certain scientific research expenditure deductions claimed by his firm were being scrutinised, and he was required to respond within a specified deadline.

Arjun panicked. He reached out to a general civil lawyer he had used earlier for a property matter. That lawyer provided vague advice, drafted a generic reply, and the matter only escalated. The Assessing Officer was unsatisfied with the response, and a follow-up communication arrived within weeks.

A colleague referred Arjun to Advocate Sudhir Rao's chambers. The difference was immediately apparent. The notice was examined in detail, the specific deduction claims were mapped against Section 35(1) and Section 35(2AB) of the Income Tax Act, and a precise, well-documented reply was submitted along with supporting evidence. The Assessing Officer closed the scrutiny without raising a demand. Arjun's case underscores a simple reality: a tax notice is not a general legal matter. It demands focused, domain-specific attention, and getting that early makes all the difference.

You can read about this case in detail at https://sudhirrao.com/section-35-3-income-tax-notice-received-via-email-what-to-do/