The Finance bill, with newly introduced Section 270A introduced a section 270AA which provides immunity to the assesse who is liable to pay penalty under section 270A. Immunity will be granted from imposition of penalty under section 270A and initiation of proceedings under section 276C, if he fulfills the following conditions:-
- The tax and interest payable as per the order of assessment and reassessment (under section 143(3) or 147) within the period stated in the notice, is paid, and
- No appeal against the order of demand is filed by the assesse.
Salient features of section 270AA are: -
- The assesse can make an application within one month from the end of the month in which the order is passed.
- The AO shall grant him immunity or reject the application within one month from the end of the month in which the application is received.
- Once the application is made, the assesse cannot file an appeal.
- Only the assessing officer has the power to grant the immunity. If the penalty is initiated by the by commissioner/commissioner (Appeals), then immunity under this section cannot be given.
- No application for immunity shall be rejected unless an opportunity of being heard is given to the applicant assesse.
- Order passed under this section is final and cannot be revisited or revised.
If the order is rejected it is possible to file an appeal. Section 249 is amended to exclude the period taken by such procedure (u/s 270AA), to determine the period of limitation of filing an appeal.
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