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How to read section numbers: s.80C→s.123 means Section 80C of the Income-tax Act, 1961 is now Section 123 of the Income-tax Act, 2025 (in force from 1 April 2026). Returns for FY 2025-26 still use the old numbers; Tax Year 2026-27 onwards uses the new ones. Section Finder
The immunity route
Under section 270AA of the 1961 Act, if you pay the tax and interest as per the order within the time allowed and do not file an appeal, you can apply for immunity from the 270A penalty (except misreporting cases) within one month from the end of the month in which the order is received.
Defending the penalty
- Show that the addition is a bona fide difference of opinion, with full disclosure
- Show that misreporting categories (suppression, false entries) do not apply
- Penalty proceedings are separate in law — an addition does not automatically mean penalty
Common mistakes
- Missing the 270AA application window
- Treating penalty as automatic
- Appealing and also seeking immunity
Frequently asked questions
Yes — an appeal lies to the Commissioner (Appeals) within 30 days of receiving the order. If you applied for immunity under 270AA, you cannot appeal the assessment for those issues.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
