Penalty for concealment of income in case of search & seizure - Section 271AAB - Income Tax - Ready Reckoner - Income Tax

Penalty for concealment of income in case of search seizure - Section 271AAB (1) The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated under section 132 on or after 1-7-2012 the assessee shall pay by way of penalty, in addition to tax, if any, payable by him- A. 30% of the undisclosed income of the specified previous year, if such assessee satisfies the following conditions:- In the course of the search, in a statement u/s 132(4) , admits the undisclosed income and specifies the manner in which such income has been derived; Substantiates the manner in which the undisclosed income was derived; and On or before the specified date- Pays the tax, together with interest, if any, in respect of the undisclosed income; and Furnishes the return of income for the specified previous year declaring such undisclosed income therein B. 20% of the undisclosed income of the specified previous year, if such assessee satisfies the following conditions: - In the course of the search, in a statement 132(4), does not admit the undisclosed income, and On or before the specified date- Declares such income in the return of income furnished for the specified previous year; and Pays the tax, together with interest, if any, in respect of the undisclosed income; C. 60% of the undisclosed income of the specified previous year, if it is not covered by the provisions of clauses (A) and (B) . (1A) The Assessing Officer may or Commissioner (Appeals) [w.e.f. 1-4-2022] , notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated u/s 132 on or after the date on which the Taxation Laws (Second Amendment) Bill, 2016 receives the assent of the President, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him - (a) a sum computed at the rate of 30% of the undisclosed income of the specified previous year, if the assessee - in the course of the search, in a statement under u/s 132(4) , admits the undisclosed income and specifies the manner in which such income has been derived substantiates the manner in which the undisclosed income was derived on or before the specified date - pays the tax, together with interest, if any, in respect of the undisclosed income - and furnishes the return of income (b) a sum computed at the rate of 60% of the undisclosed income of the specified previous year, if it is not covered under the provisions of clause (a). (2) No penalty under the provisions of section 271(1)(c) or 270A shall be imposed upon the assessee in respect of the undisclosed income referred to in section 271AAB(1) or (1A). (3) The provisions of sections 274 and 275 shall, as far as may be, apply in relation to the penalty referred to in this section. For the purposes of this section specified date means the due date of furnishing of return of income under section 139(1) or the date on which the period specified in the notice issued under section 153A for furnishing of return of income expires, as the case may be; Specified previous year means the previous year- Which was ended before the date of search, but the date of furnishing the return of income under section 139(1) for such year has not expired before the date of search and the assessee has not furnished the return of income for the previous year before the date of search; or In which search was conducted; undisclosed Income means- Any income of the specified previous year represented, either wholly or partly, by any money, bullion, jewellery or other valuable article or thing or any entry in the books of account or other documents or transactions found in the course of a search under section 132 , which has- Not been recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous year; or Otherwise not been disclosed to the Commissioner before the date of search; or Any income of the specified previous year represented, either wholly or partly, by any entry in respect of an expense recorded in the books of account or other documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted.