India - Income Tax Act 2010 - Saarc

1.709 CH. XIV-B - PROCEDURE FOR ASSESSMENT OF SEARCH CASES S. 158BFACertain interests and penalties not to be levied or imposed.158BF. No interest under the provisions of section 234A, 234B or 234C orpenalty under the provisions of clause (c) of sub-section (1) of section 271or section 271A or section 271B shall be levied or imposed upon the assessee inrespect of the undisclosed income determined in the block assessment.4[Levy of interest and penalty in certain cases.158BFA. (1) Where the return of total income including undisclosed incomefor the block period, in respect of search initiated under section 132or books of account, other documents or any assets requisitioned under section132A on or after the 1st day of January, 1997, as required by a notice underclause (a) of section 158BC, is furnished after the expiry of the period specifiedin such notice, or is not furnished, the assessee shall be liable to pay simpleinterest at the rate of 5 [one] per cent of the tax on undisclosed income, determinedunder clause (c) of section 158BC, for every month or part of a monthcomprised in the period commencing on the day immediately following theexpiry of the time specified in the notice, and—(a) where the return is furnished after the expiry of the time aforesaid,ending on the date of furnishing the return; or(b) where no return has been furnished, on the date of completion ofassessment under clause (c) of section 158BC.(2) The Assessing Officer or the Commissioner (Appeals) in the course of anyproceedings under this Chapter, may direct that a person shall pay by way ofpenalty a sum which shall not be less than the amount of tax leviable but whichshall not exceed three times the amount of tax so leviable in respect of theundisclosed income determined by the Assessing Officer under clause (c) ofsection 158BC :Provided that no order imposing penalty shall be made in respect of a person if—(i) such person has furnished a return under clause (a) of section 158BC;(ii) the tax payable on the basis of such return has been paid or, if theassets seized consist of money, the assessee offers the money so seizedto be adjusted against the tax payable;(iii) evidence of tax paid is furnished along with the return; and(iv) an appeal is not filed against the assessment of that part of incomewhich is shown in the return :Provided further that the provisions of the preceding proviso shall not applywhere the undisclosed income determined by the Assessing Officer is in excessof the income shown in the return and in such cases the penalty shall be imposedon that portion of undisclosed income determined which is in excess of theamount of undisclosed income shown in the return.4. Inserted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997.5. Substituted for “one and one-fourth” by the Taxation Laws (Amendment) Act, 2003, w.e.f.8-9-2003. Earlier the quoted words were substituted for “two” by the Finance Act, 2001,w.e.f. 1-6-2001.