Immunity under Section 270AA upheld where delayed Form 68 filing was a procedural lapse and tax with interest paid.

The note addresses whether delayed uploading of Form No. 68 defeats immunity from penalty under Section 270AA where tax and interest were paid within the prescribed period and no appeal was filed. It clarifies that failure to upload Form No. 68, introduced for the relevant year, was treated as a procedural lapse rather than a substantive non compliance, relying on analogous authority; the statutory conditions of payment with interest and absence of appeal were satisfied. Operative effect: immunity under Section 270AA applies despite the delay and the penalty under Section 270A was set aside in favour of the assessee.

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Issues: Whether the assessee is entitled to immunity from levy of penalty under Section 270AA of the Income-tax Act, 1961 despite delay in filing Form No. 68, where tax and interest were paid within the prescribed time and no appeal was filed against the assessment order.

Analysis: The facts show that tax and interest demanded were paid within thirty days from the date of the assessment order and no appeal was preferred against the assessment. The assessing officer levied penalty under Section 270A of the Income-tax Act, 1961 on the ground of under-reporting arising from disallowance under Section 57(iii) of the Income-tax Act, 1961, and immunity under Section 270AA of the Income-tax Act, 1961 was denied because Form No. 68 was not uploaded within the timeframe prescribed by subsection (2) of Section 270AA. The Tribunal examined whether the delayed filing of Form No. 68 constituted a substantive failure to comply with the conditions for immunity or was merely a procedural lapse, having regard to the fact that uploading Form No. 68 was a newly introduced requirement for the relevant assessment year. The Tribunal relied on analogous judicial authority holding that delay in filing Form No. 68 is a procedural lapse and noted that the conditions of Section 270AA regarding payment of tax with interest and absence of appeal were satisfied.

Conclusion: The delay in filing Form No. 68 is a procedural lapse and does not disentitle the assessee from immunity under Section 270AA of the Income-tax Act, 1961 where tax and interest were paid within the stipulated time and no appeal was filed; appeal is allowed in favour of the assessee and penalty under Section 270A is set aside.

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