Undisclosed tax bases after search: admission and substantiation reduce penalty, non-admission or nondisclosure attracts higher statutory penalties. Where a search and seizure uncovers undisclosed tax bases for a specified financial year, a tiered penalty applies: a reduced penalty when the person admits the undisclosed tax bases during the search, substantiates their derivation, and pays tax with interest; a higher penalty where the person does not admit during the search but declares and pays in the return; and the maximum prescribed penalty where the person neither admits nor declares the tax bases. The penalty is imposed by written order of the Assessing Officer, and 'undisclosed tax bases' includes undisclosed assets and false expense entries revealed by search.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Undisclosed tax bases after search: admission and substantiation reduce penalty, non-admission or nondisclosure attracts higher statutory penalties.
Where a search and seizure uncovers undisclosed tax bases for a specified financial year, a tiered penalty applies: a reduced penalty when the person admits the undisclosed tax bases during the search, substantiates their derivation, and pays tax with interest; a higher penalty where the person does not admit during the search but declares and pays in the return; and the maximum prescribed penalty where the person neither admits nor declares the tax bases. The penalty is imposed by written order of the Assessing Officer, and "undisclosed tax bases" includes undisclosed assets and false expense entries revealed by search.
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