Answer

1. F

   Facts

   A statement can be retracted, but retraction carries weight only if it is made promptly, in writing, with reasons and supporting evidence. A late or bare retraction is often rejected.

2. P

   Provisions and law

   • Sec 131, Income-tax Act 1961 (now Sec 246, Income-tax Act 2025)Officers have civil court powers to summon, examine on oath and call for books and documents
   • Sec 270A, Income-tax Act 1961 (now Sec 439, Income-tax Act 2025)Penalty for under-reporting (50% of tax) or misreporting (200% of tax) of income
3. A

   Analysis

   CBDT has told officers to rely on evidence rather than obtain confessions under pressure, but the burden is on you to show the statement was wrong. Example: you said ₹5 lakh of sales were unrecorded, but the books show they were recorded; file a retraction within days with the ledger and invoices. A retraction months later, without documents, usually fails.

4. C

   Conclusion

   1. 1Write down exactly what was wrong in the statement
   2. 2File a retraction letter or affidavit with the officer quickly
   3. 3Attach documents that prove the correct position
   4. 4Keep proof of filing
   5. 5Use the retraction in any later reply or appeal

Retracting without evidence rarely helps; documents matter more than words.

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