Answer

1. F

   Facts

   Sec 278E makes the court presume a culpable mental state in tax offences. You can rebut it by proving the opposite beyond reasonable doubt under the section. So evidence of your reason matters a lot.

2. P

   Provisions and law

   • Sec 278E, Income-tax Act 1961Court presumes a culpable mental state, but you can prove the contrary
   • Sec 276CC (now Sec 479)Prosecution for wilful failure to file a return on time; jail of 3 months to 2 years, or 6 months to 7 years where tax evaded exceeds ₹25 lakh
3. A

   Analysis

   The department must still prove the basic facts, such as the return being due and not filed. The presumption then shifts the burden to you on intent. Gather evidence early: medical records, emails with your accountant, proof that you believed no return was needed. Present it in the show cause reply, because a well documented reply can stop the complaint from being filed at all.

4. C

   Conclusion

   1. 1Write down the timeline of why returns were not filed.
   2. 2Collect documents for each point.
   3. 3Include them in your reply.
   4. 4Keep originals for any court stage.

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