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Immunity from imposition of Penalty and initiation of proceedings under section 276C or 276CC [Section 270AA]


(1) Conditions to be fulfilled for making an application for grant of Immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or 276CC [Section 270AA(1)]

An assessee may make an application to the Assessing Officer to grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or 276CC, if he fulfils the following conditions, namely:—

(a)     the tax and interest payable as per the order of assessment or reassessment under section 143(3) or section 147. as the case may be, has been paid within the period specified in such notice of demand: and

(b)     no appeal against the order of assessment or reassessment under section 143(3) or section 147 has been filed.

(2) Time period for making an application [Section 270AA (2)]

An application referred to in section 270AA (1) shall be made within one month from the end of the month in which the order referred to in section 270AA(1)(a) has been received and shall be made in Form No. 68 and verified in such manner as may be prescribed.

(3) The Assessing Officer shall grant immunity from imposition of penalty or initiation of proceedings under section 276C or 276CC except in case of misreporting of income [Section 270AA (3)]

The Assessing Officer shall—

— subject to fulfilment of the conditions specified in section 270AA(l) and

— after the expiry of the period of filing the appeal as specified in section 249(2Xb),

grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or 276CC, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in section 270A(9) (relating to misreporting of income). (See below).

(4) Assessing Officer to pass an order within one month accepting or rejecting the application referred to in section 270AA (1) [Section 270AA (4)]

The Assessing Officer shall. within a period of one month from the end of the month in which the application under section 270AA (1) is received, pass an order accepting or rejecting such application:

However, no order rejecting the application shall be passed unless the assessee has been given an opportunity of being heard.

(5) Order passed under Section 270AA (4) to be final [Section 270AA (5)]

The order made under section 270AA (4) shall be final.

(6) Assessment / Re-Assessment order passed after accepting the application under section 270AA (4) is not appealable or subject to revision [Section 270AA (6)]

No appeal under section 246A or an application for revision under section 264 shall be admissible against the order of assessment or reassessment, referred to in section 270AA(1)(a), in a case where an order under section 270AA (4) has been made accepting the application.

(7)  Power of Principal Commissioner or Commissioner to grant immunity from penalty [Section 273AA]

(1) hen can application be made for grant of immunity? [Section 273AA(1)]:

A person may make an application to the Principal Commissioner or Commissioner for granting immunity from penalty, if—

(a)     he has made an application for settlement under section 245C and the proceedings for settlement have abated under section 24511A; and

(b)        the penalty proceedings have been initiated under this Act.

(2) Application cannot be made after imposition of penalty after abatement [Section 273AA(2)]:

The application to the Principal Commissioner or Commissioner under section 273AA(1) shall not be made after the imposition of penalty after abatement.

(3) Principal Commissioner or Commissioner may grant immunity subject to certain conditions [Section 273AA(3):

The Principal Commissioner or Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of any penalty under this Act, if he is satisfied that the person has, after the abatement, co-operated with the income-tax authority in the proceedings before him and has made a full and true disclosure of his income and the manner in which such income has been derived.

(4) Time limit for passing order under section 273AA(3) [Section 273AA(3A)]:

The order under section 273AA(3). either accepting or rejecting the application in full or in part, shall be passed within a period of 12 months from the end of the month in which the application under section 273AA(3) is received by the Principal Commissioner or the Commissioner.

However, no order rejecting the application, either in full or in part, shall be passed unless the assessee has been given an opportunity of being heard:

Further, where any application is pending as on 1.6.2016, the order shall be passed on or before 3 1.5.2017.

(5) Immunity shall stand withdrawn, if there is a failure to satisfy the conditions [Section 273AA(4)]:

The immunity granted to a person under section 273AA(3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.

(6) Immunity to be withdrawn if there is concealment of particulars or any false evidence [Section 273AA(5)]:

The immunity granted to a person under section 273AA(3) may, at any time, be withdrawn by the Principal Commissioner or Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement. concealed any particulars material to the assessment from the income-tax authority or had given false evidence, and thereupon such person shall become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.

 

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