Answer

1. F

   Facts

   A demand after a scrutiny order under Sec 143(3) can be paid, rectified if there is an apparent mistake, or appealed before the Commissioner (Appeals) within 30 days of service of the demand.

2. P

   Provisions and law

   • Sec 143(3), Income-tax Act 1961 (now Sec 270(10))The scrutiny assessment order determines income after examining your evidence.
   • Sec 246A, Income-tax Act 1961 (now Sec 357)Orders that raise a demand, such as assessments, intimations with adjustments and penalty orders, can be appealed before the Commissioner (Appeals).
   • Sec 154, Income-tax Act 1961 (now Sec 287)Mistakes apparent from the record can be rectified on request within four years from the end of the financial year of the order.
3. A

   Analysis

   Read the additions one by one. If the officer added ₹4,00,000 as unexplained cash deposit but you had shown it as sale proceeds of jewellery, that is a factual dispute and an appeal is needed. If the order wrongly computed tax or ignored TDS, a rectification is faster. File the appeal and apply for stay at the same time if the amount is large.

4. C

   Conclusion

   1. 1List each addition in the order.
   2. 2Separate computational mistakes from disputed additions.
   3. 3File rectification for mistakes.
   4. 4File Form 35 within 30 days for disputes.
   5. 5Apply for stay of the disputed demand.

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