Waiver of penalty and immunity from prosecution available on payment of tax, interest and specified additional income tax. Section 440 is amended to allow an assessee to obtain waiver of penalty and immunity from prosecution by the Assessing Officer where tax and interest due under an assessment/reassessment are paid timely, an additional income tax is paid in lieu of penalty (100% for misreporting categories (a)-(f); 120% for category (g)), no appeal has been filed, the application is made within the prescribed one month period, and no proceeding has been initiated.