The Tax Publishers

Procedures and Precautions in Relation to Section 270AA, 273A, 273AA

1. Possibility of immunity from penalty to be levied under section 270A and from prosecution under section 276C or 276CC [Section 270AA]

The Finance Act, 2016 has also inserted a new section 270AA w.e.f. assessment year 2017-18 so as to provide immunity from imposition of penalty under section 270A in certain cases on fulfillment of certain conditions.

(i) Conditions for granting immunity from imposition of penalty under section 270A

According to 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 section 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 referred to in clause (a) has been filed.

Further, immunity from penalty may be granted only where the proceedings for penalty under section 270A have not been initiated under the circumstances referred to in section 270A(9). In other words, it can be said that where under-reporting is due to misreporting of income, no immunity can be granted.

(ii) Time limit for filing application for immunity

The section 270AA(2) provides that an application to the assessing officer for granting immunity shall be made within one month from the end of the month in which the order of assessment or reassessment has been received and shall be made in such Form No. 68.

(iii) Order accepting or rejecting application for granting immunity

Section 270AA(3) provides that the assessing officer shall, on fulfillment of the above conditions and after the expiry of period of filing appeal as specified in sub-section (2) of section 249, grant immunity from initiation of penalty under section 270A and initiation of proceedings under section 276C, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A.

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com