Immunity from imposition of penalty and initiation of proceeding u/s 276C or 276CC - Section 270AA

Immunity from penalty where tax and interest are paid and no appeal exists, subject to exception for misreporting.

Section 270AA permits an assessee to apply for immunity from penalty under section 270A and from initiation of prosecution under sections 276C or 276CC if tax and interest due under the assessment or reassessment are paid within the demanded period and no appeal has been filed; the application must be made in the prescribed form and verified within the statutory window. The Assessing Officer, after the appeal filing period has expired, must grant immunity except in cases of misreporting of income, decide the application within the prescribed time, give a hearing before rejecting, and issue a final order, acceptance of which bars specified appeals and revisions.