57[Penalty where search has been initiated.
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