CA. Dashrath Maheshwari
(TaXpert)
(15103 Points)
Replied 07 April 2008
‘271AAA. (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 the 1st
day of June, 2007, the assessee shall pay by way of penalty, in addition to tax, if any, payable by
him, a sum computed at the rate of ten per cent. of the undisclosed income of the specified previous
year.
(2) Nothing contained in sub-section (1) shall apply if the 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) pays the tax, together with interest, if any, in respect of the undisclosed income.
(3) No penalty under the provisions of 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).
(4) The provisions of sections 274 and 275 shall, so far as may be, apply in relation to the
penalty referred to in this section.
The section is to impose Penalty where search has already been initiated and is self explainatory.
For What you want explaination in above...?
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