Section 270AA - Immunity from imposition of penalty, etc.

Immunity from penalty: payment of assessed tax and absence of appeal enables grant of penalty and prosecution immunity.

An assessee who pays the tax and interest as per an assessment or reassessment and has not filed an appeal may apply to the Assessing Officer for immunity from penalty under section 270A and from initiation of proceedings under sections 276C or 276CC. The application must be made within the prescribed period and form, and the Assessing Officer must grant immunity after the expiry of the appeal period where penalty proceedings have not been previously initiated, deciding the application within a prescribed three-month period and providing an opportunity of hearing before any rejection; an acceptance is final and bars further appeals or revision against that assessment.