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Penalty paid but the order is wrong

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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.

Provisions

Sec 246A (now Sec 357); Sec 270A (now Sec 439); Sec 244A (now Sec 437)

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.

Close

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

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