Answer

1. F

   Facts

   An updated return cannot be filed for a year in which assessment or reassessment proceedings are pending or completed. Once a Sec 144 proceeding is open for that year, ITR-U is not available for it.

2. P

   Provisions and law

   • Sec 139(8A), Income-tax Act 1961 (now Sec 263(6))An updated return can be filed within the allowed period, but not where assessment, reassessment or certain other proceedings for that year are pending or completed.
   • Sec 144, Income-tax Act 1961 (now Sec 271)If you do not file a return or do not comply with notices under Sec 142(1) or 143(2), the officer can assess to the best of judgment after a show-cause notice giving you a date to be heard.
3. A

   Analysis

   Your remedy is a full, honest reply in the proceeding itself, showing the correct income and tax. You can offer the correct income in the reply and pay the tax on it to limit interest. Other years without proceedings may still allow ITR-U, which can reduce future risk.

4. C

   Conclusion

   1. 1Do not try ITR-U for the year under proceedings.
   2. 2Compute correct income for that year.
   3. 3Offer it in your reply with proofs.
   4. 4Consider paying the tax you accept.
   5. 5Review other years for ITR-U eligibility.

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