Penalty where search has been initiated

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..... ious year, if such assessee- ( i ) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived; ( ii ) substantiates the manner in which the undisclosed income was derived; and ( iii ) on or before the specified date- ( A ) pays the tax, together with interest, if any, in respect of the undisclosed income; and ( B ) furnishes the return of income for the specified previous year declaring such undisclosed income therein; ( b ) a sum computed at the rate of twenty per cent of the undisclosed income of the specified previous year, if such assessee- ( i ) in the course of the search, in a statement under .....

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..... for the specified previous year declaring such undisclosed income therein; (b) a sum computed at the rate of sixty per cent. 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 4 [section 270A or] clause ( c ) of sub-section (1) of section 271 shall be imposed upon the assessee in respect of the undisclosed income referred to in sub-section (1) 7 [ or sub-section (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. Explanation. -For the purposes of this section,- ( a ) specified date means the due date of furnishing of return of .....

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..... ents 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. ] ----------------- Notes:- 1. Inserted vide Finance Act, 2012, w.e.f. 01-07-2012. 2. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013. 3. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017, before it was read as, which shall not be less than thirty per cent. but which shall not exceed ninety per cent. 4. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2017 5. Inserted vide THE TAXATION LAWS (SECOND AMENDMENT) ACT, 2016 w.e.f. December 16, 2016 i.e. .....

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