Answer

1. F

   Facts

   Paying a penalty does not stop you from appealing, as long as you are within 30 days of receiving the order or can show reasons for delay. If the appeal succeeds, the amount is refunded with interest as the law allows.

2. P

   Provisions and law

   • 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
   • Sec 244A (now Sec 437)Interest on refunds
3. A

   Analysis

   File Form 35 and mention that the penalty is paid under protest. If the 30 days have passed, add a condonation request with reasons, for example that you were unaware of the right to appeal and acted soon after learning. If the appeal deletes a ₹60,000 penalty, the refund should follow the appellate order. Note that you cannot take immunity under Sec 270AA once you appeal the assessment.

4. C

   Conclusion

   1. 1Check how many days have passed since the order
   2. 2File Form 35, with a condonation request if late
   3. 3Attach proof of payment
   4. 4Follow up for refund after a favourable order

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