Answer

1. F

   Facts

   CPC can still make the adjustment if its system does not accept your reason. You then have two routes: rectification for a mistake apparent from the record, or an appeal to the Commissioner (Appeals). The demand can also be disputed on the portal.

2. P

   Provisions and law

   • Sec 154 (now Sec 287)A mistake apparent from the record can be rectified, on your request or on the officer's own
   • Sec 246A (now Sec 357)An appeal lies to the Commissioner (Appeals) against assessment orders and adjustments in an intimation
   • Sec 156 (now Sec 289)A notice of demand is served for any tax, interest or penalty payable
3. A

   Analysis

   Rectification under Sec 154 (now Sec 287) suits clear errors, such as income added that is already visible in another schedule. Where the dispute needs facts or arguments, file an appeal in Form 35 under Sec 246A, which allows appeals against adjustments made in an intimation. On the demand, use Response to Outstanding Demand and choose 'disagree' with the reason, so recovery is not pressed while you pursue the remedy. Do not rely on rectification alone if the 30 day appeal window is about to close.

4. C

   Conclusion

   1. 1Compare the intimation with your response.
   2. 2File a rectification request if the error is apparent from the return.
   3. 3If facts need to be argued, file Form 35 online within 30 days.
   4. 4Respond to the outstanding demand marking it disputed.

A pending refund can be set off against this demand under Sec 245 unless you respond to the set off notice.

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