Answer

1. F

   Facts

   Immunity and appeal cannot go together. Immunity gives certainty: tax and interest paid, no penalty, no prosecution. An appeal keeps the chance of deleting the addition, and if it is deleted, the penalty on it also falls.

2. P

   Provisions and law

   • Sec 270AA (now Sec 440)Immunity from Sec 270A penalty and prosecution on paying tax and interest and not appealing
   • Sec 246A (now Sec 357)Appeal to the Commissioner (Appeals)
   • Sec 270A (now Sec 439)Penalty of 50% of tax on under-reported income, or 200% where under-reporting is due to misreporting
3. A

   Analysis

   Look at each addition. A disallowance of ₹5,00,000 on a point where courts are divided may be worth appealing. An addition for cash deposits you cannot explain is weak in appeal. Remember the Form 68 window is short, roughly 30 to 60 days, so decide early. Also count appeal time and costs; appeals can take years.

4. C

   Conclusion

   1. 1Rate each addition as strong, weak or unclear for appeal
   2. 2Compute penalty exposure if the appeal fails
   3. 3Decide before the Form 68 deadline
   4. 4File either Form 68 with payment or Form 35, not both

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.