Tax notices + litigation · Faceless Assessment

Objections to draft assessment order: your second chance

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After SCN response, if AO still proposes to add income, they issue a Draft Assessment Order. This is not the final order, you get 7-10 days to object.

Provisions

IT Act, Sec 144B(6) (now 273) | CBDT Scheme 2020, Para 8

Analysis

Your objection to the draft order goes to a Review Unit (different from the Assessment Unit), they independently review whether the addition is justified. If review unit agrees with you, the addition is dropped. If review unit confirms, the final order is passed with the addition. This second chance is built into the faceless system precisely so that unreasonable additions by one AO can be checked by another. Use it, well-drafted objections at draft order stage have a high success rate.

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