Union Budget 2025-26 (Full) + Finance Bill, 2025

VII. Extending the processing period of application seeking immunity from penalty and prosecution

Section 270AA of the Act provides, inter-alia, procedure of granting immunity by the Assessing Officer from imposition of penalty or prosecution, subject to fulfillment of certain conditions as mentioned therein. Sub-section (2) of the said section provides that an application for granting immunity from imposition of penalty shall be made within one month from the end of the month in which the order referred to in clause (a) of sub-section (1) of the said section has been received by the assessee. Sub-section (4) of the said section provides that Assessing Officer shall pass an order accepting or rejecting the application, within a period of one month from the end of the month in which the application requesting immunity is received.

2. Inputs have been received from the stakeholders that tax-payers are facing challenges to represent their case within this limited period and therefore the period for processing their applications may be increased.

3. In view of the same, it is proposed to amend the sub-section (4) of section 270AA of the Act so as to extend the processing period to three months from the end of the month in which application for immunity is received by the Assessing Officer.

4. This amendment will take effect from the 1st day of April, 2025.

[Clause 74]

 

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Full Text:

Union Budget 2025-26 (Full) + Finance Bill, 2025

Processing period for immunity applications extended to a longer disposal timeframe for Assessing Officers, effective from April. The amendment extends the Assessing Officer's processing period for applications seeking immunity from penalty and prosecution from one month to three months measured from the end of the month in which the application is received. The current filing requirement that an application for immunity from penalty be made within one month from the end of the month in which the relevant order is received remains as stated. The amendment is proposed to take effect from the first day of April, 2025.