Draft Assessment Order

Draft Assessment Order – A preliminary assessment order issued by the Assessing Officer (AO) before passing the final assessment. It serves to inform the taxpayer about the proposed tax, adjustments, or disallowances and provides an opportunity to raise objections or provide clarifications. The draft order ensures transparency and allows the taxpayer to present their case before the final assessment is completed.

Example: The AO issues a draft assessment order to a multinational company proposing certain disallowances on claimed expenses. The company reviews the draft and submits objections or additional documents to justify its claims before the AO passes the final assessment order