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Yes. Sec 270AA lets you apply for immunity from penalty and from prosecution under Sec 276C and 276CC if you pay the tax and interest in the demand within the time allowed and do not appeal. The application is made in Form 68 within one month from the end of the month in which the order is received.
Sec 270AA (now Sec 440); Sec 270A (now Sec 439); Form 68, Income-tax Rules 1962 (now Form 161)
If the order dated 10 September 2026 is received the same day, Form 68 must be filed by 31 October 2026. Pay the full demand within the period in the notice of demand. Immunity makes sense when the addition is hard to defend and the penalty is large, for example a ₹1,00,000 penalty on a ₹2,00,000 tax demand. If you believe the addition is wrong, appeal instead, because immunity needs you to give up the appeal.
Filing an appeal later makes the immunity application invalid.
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