Answer

1. F

   Facts

   A show-cause under Sec 144 means the officer plans to assess your income on the information available, because a return or earlier notices were not complied with. It gives you a final date to reply and be heard before the order.

2. P

   Provisions and law

   • 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.
   • Sec 142(1), Income-tax Act 1961 (now Sec 268(1))The officer can ask you to file a return or produce accounts, documents and information.
3. A

   Analysis

   For AY 2026-27 and earlier years this is under the 1961 Act, Sec 144, now Sec 271 of the 2025 Act. The notice usually attaches a draft showing the income the officer proposes, often based on AIS figures. If you reply fully by the date, the officer must consider your facts. If you stay silent, the draft can become the final order with a demand.

4. C

   Conclusion

   1. 1Note the reply date and time in the notice.
   2. 2Read the draft income and how it was worked out.
   3. 3Collect documents for each item.
   4. 4Reply on e-Proceedings before the date.
   5. 5Ask for a hearing if you need to explain.

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