Answer

1. F

   Facts

   The Sec 245 response is not an appeal. If the officer confirms a demand that comes from an assessment order you disagree with, the remedy is an appeal against that order, or rectification if it is a clear mistake.

2. P

   Provisions and law

   • Sec 246A, Income-tax Act 1961 (now Sec 357, Income-tax Act 2025)Appeal to the Commissioner (Appeals) against an order or intimation, in Form 35 (now Form 99)
   • Sec 154, Income-tax Act 1961 (now Sec 287, Income-tax Act 2025)A mistake apparent from the record can be rectified, on request or by the officer
   • Sec 245, Income-tax Act 1961 (now Sec 438, Income-tax Act 2025)Refund can be set off against an earlier demand only after a written intimation to the taxpayer
3. A

   Analysis

   Appeal to the Commissioner (Appeals) under Sec 246A (now Sec 357) lies against the original order or intimation, not against the set-off. Example: an AY 2018-19 assessment added ₹2 lakh and the appeal was never filed; a late appeal with reasons for delay may still be admitted. If the error is apparent from the record, rectification is faster.

4. C

   Conclusion

   1. 1Get the assessment order behind the demand
   2. 2Decide between rectification and appeal
   3. 3File Form 35 (now Form 99) online with grounds and a condonation request if late
   4. 4Seek a stay with 20% payment if recovery is pressing
   5. 5Inform CPC of the appeal in the demand response

Appeals far beyond 30 days are admitted only with a good reason for delay.

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