Faceless assessment

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This query is : Resolved

P.Madhivadhanan (Querist)

22 December 2025 Form 68 filed for claiming immunity. Ignoring immunity claim if penalty is levied , we can file against the proceedings

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 December 2025 If your application for immunity under Section 270AA (filed via Form 68) is rejected or ignored, leading to a penalty under Section 270A, you have the following options:
Appeal Against Penalty Order: You can file an appeal against the penalty order passed under Section 270A. This is typically filed before the Commissioner of Income Tax (Appeals) (CIT(A)) or the National Facial Assessment Centre (NFAC).
Challenging Procedural Breaches: Courts and Tribunals have ruled that if substantive conditions (paying tax and not appealing the assessment) are met, filing Form 68 is a directory/procedural requirement. Penalties have been deleted by the ITAT in cases where the AO ignored or rejected immunity claims despite compliance with these substantive rules.

Verify the Order: Check if the AO issued a formal order rejecting your immunity application; they are mandated to do so within one month of your application and must provide an opportunity to be heard before rejection.
File Form 35: If a penalty order has been served, file an appeal in Form 35 before the CIT(A) within 30 days of receiving the order.

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