|(1) A person may make an application to the commissioner for granting immunity from penalty : if
(a) he has applied for settlement u/s 245C and the proceedings for settlement have abated u/s 245HA; and
(b) the penalty proceedings have been initiated under this Act.
(2) The application for immunity shall not be made after the imposition of penalty after abatement.
(3) The Commissioner may grant immunity from imposition of penalty if Commissioner is satisfied that the person after the abatement co-operated with the income-tax authority and has made full and true disclosure of his income and the manner in which such income has been derived. Certain conditions may also be imposed by the Commissioner.