We have received an intimation under Section 245 / 245(1) from the Income Tax Department.
It mentions an outstanding demand for F.Y. 2007-08 (A.Y. 2008-09).
No earlier notice or demand communication was ever received by us. We only came to know after checking the portal, where the outstanding demand amount is shown.

My questions are:
1) Is it legally valid for the Income Tax Department to raise or adjust a demand that is more than 15 years old under Section 245?
2) What is the limitation period for recovery or adjustment of such old demands?
3) What steps should be taken now — should we file a disagreement response through the “Outstanding Demand” option, or approach the AO / CPC for rectification?
4) Since we have no records or documents for that period, how should we draft our reply to safeguard the assessee’s interest?

Any reference to CBDT circulars, case laws, or practical experience in such old-demand Section 245 cases would be highly appreciated.