Section 273AA: Granting Penalty Immunity for Abated Settlement Applicants under Income Tax Act, Conditions Apply for Cooperation and Disclosure.

Section 273AA of the Income Tax Act empowers the Principal Commissioner or Commissioner to grant immunity from penalties to individuals whose settlement proceedings have abated, provided they have applied for settlement under section 245C and penalty proceedings have commenced. Applications for immunity must be made before penalties are imposed post-abatement. Immunity may be granted if the applicant cooperates with tax authorities and fully discloses income details. Decisions on applications must be made within twelve months, with a hearing opportunity for the applicant. Immunity can be withdrawn if conditions are breached or if false information is provided.