What happens when the Notice issued under Section 74(1) is held not sustainable by any Appellate Authority or Tribunal or Court for the reason that the charges of fraud or any willful misstatement or suppression of facts to evade tax has not been established

The proper officer shall determine the tax payable by such person deeming as if the Notice were issued under section 73(1).

(ICAI FAQ PUBLICATIONS 06-09-2017 General provisions relating to determination of tax : FAQ NO. 21)