Power of Commissioner to grant immunity from prosecution [Section 278AB] :

Section 278AB empowers the Commissioner to grant immunity from prosecution –

(i) The application for the immunity must be made by the assessee (person whose case has been abated under section 245HA) to the Commissioner of Income-tax before institution of the prosecution proceedings after abatement.

(ii) The assessee can approach the Commissioner for immunity any time if prosecution proceedings were instituted before or during the pendency of settlement proceedings.

However, if the assessee has received any notice etc. from the Income-tax authority for institution of prosecution, then he must apply to the Commissioner for immunity, before actual institution of prosecution.

(iii) The Commissioner can grant immunity, subject to such conditions as he may think fit to impose, on being satisfied that the assessee has –

(a) co-operated in the proceedings after abatement; and

(b) made a full and true disclosure of his income and the manner in which such income has been derived.

(iv) Where application for settlement under section 245C had been made before the 1st June, 2007, the Commissioner can also grant immunity from prosecution for any offence under this Act or under the Indian Penal Code or under any other Central Act.

(v) If the assessee fails to comply with any condition subject to which the immunity was granted, the same would be withdrawn.

(vi) The immunity granted to a person may, at any time, be withdrawn by the Commissioner, if he is satisfied that such person had, in the course of any proceedings, after abatement, –

(a) concealed any particulars material to the assessment from the income-tax authority; or

(b) given false evidence.

Consequently, the person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the proceedings.