Immunity from imposition of penalty, etc.
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 440(1) of Income Tax Act 2025
440(1) An assessee may make an application to the Assessing Officer for granting immunity from penalty under section 439 and initiation of proceedings under section 478 or section 479, if––
- 440(1)(a) the tax and interest payable as per the order of assessment or reassessment under section 270(10) or section 279, has been paid within the period specified in the notice of demand; and
- 440(1)(b) no appeal against the order referred to in clause (a) has been filed.
Section 440(2) of Income Tax Act 2025
440(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 the said sub-section has been received in such form and such manner as prescribed.
Section 440(3) of Income Tax Act 2025
440(3) The Assessing Officer, on fulfilment of the conditions as specified in sub-section (1), and after the expiry of the period of filing appeal as specified in section 358(3)(a), shall grant immunity from penalty under section 439 and initiation of proceedings under section 478 or 479.
Section 440(4) of Income Tax Act 2025
440(4) No immunity under sub-section (3) shall be granted if penalty has been initiated under circumstances referred to in sub-section 439(11).
Section 440(5) of Income Tax Act 2025
440(5) The Assessing Officer, shall pass an order accepting or rejecting the application as referred to in sub-section (1) within three months from the end of the month of its receipt.
Section 440(6) of Income Tax Act 2025
440(6) No order of rejection under sub-section (5) shall be made without giving the assessee an opportunity of being heard.
Section 440(7) of Income Tax Act 2025
440(7) The order made under sub-section (5) shall be final.
Section 440(8) of Income Tax Act 2025
440(8) No appeal under section 356 or 357 or an application for revision under section 378 shall be admissible against the order referred to in sub-section (1)(a), if an order under sub-section (5) has been made accepting the application.
