The assessee had filed an application seeking immunity under section 270AA from imposition of penalty under section 270A the Act and AO passed order denying the immunity from penalty and prosecuting the assesse, the court held that where the assessee had satisfied the three basic conditions: (i) payment of the tax demand; (ii) non-institution of an appeal; and (iii) initiation of a penalty for underreporting of income and not on account of misreporting of income, the assessee cannot be denied immunity on account of AO’s failure to issue an order under the Act within the statutory time limit. The Court set aside the 270A order and directed the Assessing Officer to grant immunity under section 270AA of the Act. Applied Schneider Electric South East Asia (HQ) PTE Ltd. v. ACIT, International Taxation [W.P. (c) No. 5111 of 2022, dated 28-3-2022]. (AY. 2017 -18)