Immunity from penalty may be granted where applicant cooperates post-abatement and makes a full, true disclosure. The Principal Commissioner or Commissioner may grant immunity from penalty to a person who applied for settlement and whose settlement proceedings abated, provided penalty proceedings have been initiated and the application is made before imposition of penalty. Immunity may be granted, subject to conditions, where the person cooperated after abatement and made a full and true disclosure of income and its derivation. The order must be passed within twelve months, rejection only after opportunity of being heard, and immunity is withdrawable for breach of conditions or for concealment or false evidence, with penalties applying thereafter.