What is Power of [Principal Commissioner or] Commissioner to grant immunity from penalty? What is the meaning Penalty not to be imposed in certain cases? Section 273AA and 273B of Income Tax Act 1961

Power of [Principal Commissioner or] Commissioner to grant immunity from penalty and Penalty not to be imposed in certain cases are defined under section 273AA and 273B of Income Tax Act 1961. Provisions under these Sections are:

Section 273AA of Income Tax Act "Power of [Principal Commissioner or] Commissioner to grant immunity from penalty"

Section 273AA. (1) A person may make an application to the 5[Principal Commissioner or] Commissioner for granting immunity from penalty, if-

(a) he has made an application for settlement under section 245C and the proceedings for settlement have abated under section 245HA; and

(b) the penalty proceedings have been initiated under this Act.

(2) The application to the [Principal Commissioner or] Commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement.

(3) The [Principal Commissioner or] Commissioner may, subject to such conditions as he may think fit to impose, grant to the person immunity from the imposition of any penalty under this Act, if he is satisfied that the person has, after the abatement, co-operated with the income-tax authority in the proceedings before him and has made a full and true disclosure of his income and the manner in which such income has been derived.

(4) The immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted.

 

(5) The immunity granted to a person under sub-section (3) may, at any time, be withdrawn by the [Principal Commissioner or] Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, concealed any particulars material to the assessment from the income-tax authority or had given false evidence, and thereupon such person shall become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted.

 

Section 273B of Income Tax Act "Penalty not to be imposed in certain cases"

Section 273B. Notwithstanding anything contained in the provisions of clause (b) of sub-section (1) of section 271, section 271A, section 271AA, section 271B, section 271BA, section 271BB, section 271C, section 271CA, section 271D, section 271E, section 271F, section 271FA, 6[section 271FAB], section 271FB, section 271G, 6[section 271GA,] section 271H, 7[section 271-I,] clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA or section 272B or sub-section (1) or sub-section (1A) of section 272BB or sub-section (1) of section 272BBB or clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure.

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