CA opted for Form 10IEA mistakenly - Demand raised

To resolve this issue, first verify the 143(1) notice to confirm if the demand was triggered by disallowed Old Regime deductions due to a mismatched or late Form 10IEA. If Form 10IEA was filed on time, submit an online Rectification Request u/s 154 for reprocessing; if delayed, apply for a condonation of delay u/s 119(2)(b) or file a representation before the Jurisdictional Assessing Officer alongside filing an appeal in Form 35 within 30 days if necessary.

Can I file my Returns again by not disclosing the Business Income (it is <50000 INR).. basically file under ITR 1 or 2. Any chance the Portal will consider these returns and the Demand gets dropped?

Sorry you are stuck with this. A few points that should help you plan with your CA.

Why the portal refused: for someone with business income, Form 10-IEA is the option to opt out of the new regime under Section 115BAC(6). Once it is filed and verified it cannot be revised or cancelled for that same assessment year. Withdrawal is allowed only once, and only for a later year, not the year the option was made. So the reply you got on 27 August matches the law, and filing the ITR again would not change the regime.

Before anything else, check whether the Rs 1,56,000 is fully correct:
- The demand is the old regime computation on your 10 Sept return. See that every old regime deduction you qualify for was claimed (80C, 80D, HRA, home loan interest, standard deduction). If the return was built with the new regime in mind, some may be missing.
- Match TDS and any advance or self assessment tax paid with Form 26AS and AIS, and see that all of it is credited in the intimation. A credit or arithmetic error can be fixed with a rectification request under Section 154, which is faster than an appeal.

If the demand holds after that check:
- Your CA can file an appeal to the CIT(A) in Form 35. The time limit is 30 days from service of the intimation, so with a 22 Sept intimation the last date is around 22 October. Confirm the exact date from the notice and do not wait for the ITO meeting to decide.
- Along with it, ask the AO for a stay of demand under Section 220(6). In practice this usually means depositing 20% of the disputed demand while the appeal is pending.

Whether an appeal succeeds on a wrongly selected form is a legal call for your CA, so I would not plan around getting the full demand cancelled. The [Form 10-IEA rules](https://taxgarden.in/blog/form-10ie-10iea-new-tax-regime-option-business-income-ay-2026-27) guide explains the one opt-out and one withdrawal rule, which is worth reading before next year's return.