Penalty for undisclosed income after search may be imposed unless the assessee admits, substantiates and pays tax and interest. Where a search has been conducted, the Assessing Officer may direct imposition of a penalty equal to a portion of the undisclosed income of the specified previous year in addition to tax. The penalty will not apply if, during the search, the assessee admits the undisclosed income in a recorded statement, substantiates its derivation, and pays the tax with applicable interest. Overlapping penalties under other penalty provisions are excluded in respect of the same undisclosed income, and specified procedural provisions apply to the penalty.