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GlossaryDTWhat is Section 270AA Immunity?
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What is Section 270AA Immunity?

Section 270AA immunity relieves an assessee from penalty under Section 270A and from prosecution, in exchange for paying the assessed tax and interest and not appealing the assessment order.

Bare Law Reference: Sections 270A, 270AA

Detailed Explanation

How it works

An application is made in Form 68 within one month from the end of the month in which the assessment or reassessment order is received. The tax and interest must have been paid within the time allowed by the demand notice, and no appeal may be filed. Immunity is not available where the addition is characterised as misreporting under Section 270A(9), which attracts penalty at two hundred per cent rather than fifty. Once granted, appeal under Section 246A and revision under Section 264 are both foreclosed.

Frequently asked questions

By when must Form 68 be filed?

Within one month from the end of the month in which the assessment order is received. The period is not extendable.

Can I take immunity and still appeal?

No. Not appealing is a condition of the immunity, and the two routes are mutually exclusive.

Key Takeaways

  • Extinguishes a penalty exposure of fifty per cent of the tax on the addition.
  • Form 68 must be filed within one month from the end of the month of receipt.
  • Unavailable for misreporting, and forecloses both appeal and revision.
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