What action will be initiated when the audit conducted u/s 65(1) results in a demand?

Where the audit u/s 65(1) results in detection of tax not paid or short paid or
erroneously refunded, or input tax credit wrongly availed or utilized, the proper officer may initiate action under Section 73 or Section 74.

(ICAI FAQ PUBLICATIONS : -06-09-2017 AUDIT BY TAX AUTHORITIES : FAQ NO. 6)