Penalty on undisclosed income: admission and substantiation reduce the penalty; non compliance attracts higher penalties. Where a search under section 132 has been initiated, the Assessing Officer or Commissioner (Appeals) may direct a penalty in addition to tax, with reduced, intermediate or higher penalty rates determined by whether the assessee admits and substantiates undisclosed income and complies by the specified date; amendments provide a later scheme with specified moderate and higher penalties. No separate penalty under certain other penalty provisions applies to the same undisclosed income, and procedural provisions for assessment and appeals apply as far as may be.