2(1) A person may make an application to the 1 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 the1 Principal Commissioner or Commissioner under sub-section (1) shall not be made after the imposition of penalty after abatement.
(3) The 1 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.
3 (3A) The order under sub-section (3), either accepting or rejecting the application in full or in part, shall be passed within a period of twelve months from the end of the month in which the application under the said sub-section is received by the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in full or in part,
shall be passed unless the assessee has been given an opportunity of being
heard:
Provided further that where any application is pending as on the 1st day of
June, 2016, the order shall be passed on or before the 31st day of May, 2017.
(4) The immunity granted to a person under sub-section (3) shall stand withdrawn, if such person fails to comply with any condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such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be withdrawn by the 1 Principal Commissioner or Commissioner, if he is satisfied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.
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1. Subs. by Act 25 of 2014, s. 4, for "Commissioner" (w.r.e.f. 1-6-2013).
2. Ins. by Act 18 of 2008, s. 53, (w.e.f. 1-4-2008).
3. Ins. by Act 28 of 2016, s. 107 (w.e.f. 1-6-2016).
Section 273 False estimate of, or failure to pay, advance tax
Section 273A Power to reduce or waive penalty, etc., in certain cases
Section 273AA Power of Principal Commissioner or Commissioner to grant immunity from penalty
Section 273B Penalty not to be imposed in certain cases
Section 275 Bar of limitation for imposing penalties
Section 275A Contravention of order made under sub-section (3) of section 132
Section 275B Failure to comply with the provisions of clause (iib) of sub-section (1) of section 132
Section 276 Removal, concealment, transfer or delivery of property to thwart tax recovery