AIROnline 2025 SC 73

Supreme Court Of India

(From : AIROnline 2022 Kar 1283)

Hon'ble Judge(s): J. B. Pardiwala, Manmohan , JJ

(A) Income-Tax Act (43 of 1961) , S.271AAA(1)— Undisclosed income - Penalty in case of search - Discretion of assessing officer - Penalty u/S. 271AAA(1) may be levied if there is undisclosed income in specified previous year - Imposition of penalty is not mandatory but discretionary - Discretion to be exercised by assessing officer must be sound discretion guided by law and must not be arbitrary. AIR 1990 SC 1176-Relied on (Para 31) (B) Income-Tax Act (43 of 1961) , S.271AAA(2)— Undisclosed income - Penalty in case of search - When not leviable - S 271AAA(1) of Income Tax Act is not applicable where assessee, in a statement u/S. 132 (4) in the course of the search, 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 pays the tax, together with interest, if any, in respect of the undisclosed income. (Para 32 33) (C) Income-Tax Act (43 of 1961) , S.271AAA— Undisclosed income - Penalty in case of search - Assessee admitted before DDIT during search , c....