Tax notices + litigation · Faceless Assessment

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

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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.".

Provisions

IT Act, Sec 144B (now 273) | Natural justice principles

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.

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