Immunity from penalty and prosecution under tax law depends on payment, no appeal, and timely application. Immunity from penalty and prosecution is available on application to the Assessing Officer where the assessee has paid the tax and interest demanded under the assessment or reassessment order, has paid the additional income-tax in cases covered by the under-reporting penalty provision, and has not filed an appeal against the relevant order. The application must be made within one month from the end of the month in which the assessment or reassessment order is received, in the prescribed form and manner. The Assessing Officer must decide the application within the prescribed period, give a hearing before rejection, and the order on the application is final.