Answer

1. F

   Facts

   If no return was filed and notices went unanswered, the officer can assess income on available information under Sec 144 and raise a demand. You can appeal the order before the Commissioner (Appeals).

2. P

   Provisions and law

   • Sec 144, Income-tax Act 1961 (now Sec 271)The officer can make an assessment to the best of judgment when returns or notices are not complied with.
   • 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).
3. A

   Analysis

   Such orders often add the full AIS figures, such as ₹12,00,000 of share sales, as income, when the real gain may be ₹40,000. File Form 35 within 30 days with the true computation and evidence, explaining why you could not reply earlier. Ask for a stay on the disputed demand and pay what you accept.

4. C

   Conclusion

   1. 1Read the order and the income the officer estimated.
   2. 2Prepare the true computation with proofs.
   3. 3File Form 35 within 30 days with reasons for earlier non-compliance.
   4. 4Apply for stay of the disputed demand.
   5. 5File returns on time in future years.

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