Section - 270AA (of Income Tax Act, 1961), Immunity from imposition of penalty

(1) An assessee may make an application to the Assessing Officer to grant immunity from imposition of penalty under section 270A (of Income Tax Act, 1961) and initiation of proceedings under section 276C (of Income Tax Act, 1961) or section 276CC (of Income Tax Act, 1961), 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 (of Income Tax Act, 1961) or section 147 (of Income Tax Act, 1961), 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.

(2) 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.

(3) 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 (of Income Tax Act, 1961), grant immunity from imposition of penalty under section 270A (of Income Tax Act, 1961) and initiation of proceedings under section 276C (of Income Tax Act, 1961) or section 276CC (of Income Tax Act, 1961), where the proceedings for penalty under section 270A (of Income Tax Act, 1961) has not been initiated under the circumstances referred to in sub-section (9) of the said section 270A (of Income Tax Act, 1961).

(4) 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.

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

(6) No appeal under section 246 (of Income Tax Act, 1961) or section 246A (of Income Tax Act, 1961) or an application for revision under section 264 (of Income Tax Act, 1961) 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.