Answer

Tax notices + litigation · Faceless Assessment

Show Cause Notice (SCN) in faceless: your last chance before addition

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

  1. Facts

    The SCN is issued before the AO makes an addition to your income. It says: "We propose to add ₹X to your income for the following reasons. Respond within Y days.".

  2. Provisions and law

    • IT Act, Sec 144B (now 273) | Natural justice principles
  3. Analysis

    This is the most important document in a faceless assessment, and your best opportunity. A well-drafted SCN response can prevent the addition entirely. Once the final assessment order is passed, you can only challenge it in appeal (which is more expensive and time-consuming). A weak SCN response = addition confirmed = demand + appeal. A strong SCN response = addition dropped = case closed. Respond to every point in the SCN specifically. Don't leave any point unanswered. Quote legal provisions and cite Supreme Court/High Court judgments where available.

  4. Conclusion

    Talk to a Savvy for the exact next step on your case.

A Savvy can do this for you

Updated return, ITR-U, Sec 263(6) (old 139(8A))

₹2,999

Get this doneAsk a Savvy on WhatsApp

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.

People also ask