Section 270AA of Income Tax Act for AY 2023-24

Section 270AA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Immunity from imposition of penalty, etc.

Amended and updated notes on section 270AA of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Immunity from imposition of penalty, etc.

Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 270AA of IT Act 1961 provides for Immunity from imposition of penalty, etc.

Recently, we have discussed in detail section 270A (Penalty for under-reporting and misreporting of income) of IT Act 1961. Today, we learn the provisions of section 270AA of Income-tax Act 1961. The amended provision of section 270AA is effective for financial year 2020-21 relevant to the assessment year 2021-22.

In this article, you will learn detail of the provisions of section 270AA of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-270AA: Immunity from imposition of penalty

Section 270AA(1) of Income Tax Act

An assessee may make an application to the Assessing Officer to grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or section 276CC, if he fulfils the following conditions, namely:—

  • (a) the tax and interest payable as per the order of assessment or reassessment under sub-section (3) of section 143 or section 147, as the case may be, has been paid within the period specified in such notice of demand; and
  • (b) no appeal against the order referred to in clause (a) has been filed.

Section 270AA(2) of Income Tax Act

An application referred to in sub-section (1) 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) has been received and shall be made in such form and verified in such manner as may be prescribed.

Section 270AA(3) of Income Tax Act

The Assessing Officer shall, subject to fulfilment of the conditions specified in sub-section (1) and after the expiry of the period of filing the appeal as specified in clause (b) of sub-section (2) of section 249, grant immunity from imposition of penalty under section 270A and initiation of proceedings under section 276C or section 276CC, where the proceedings for penalty under section 270A has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A.

Section 270AA(4) of Income Tax Act

The Assessing Officer shall, within a period of one month from the end of the month in which the application under sub-section (1) is received, pass an order accepting or rejecting such application:

Provided that no order rejecting the application shall be passed unless the assessee has been given an opportunity of being heard.

Section 270AA(5) of Income Tax Act

The order made under sub-section (4) shall be final.

Section 270AA(6) of Income Tax Act

No appeal under section 246A or an application for revision under section 264 shall be admissible against the order of assessment or reassessment, referred to in clause (a) of sub-section (1), in a case where an order under sub-section (4) has been made accepting the application.


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