Penalty under section 271AAA cannot be levied without a search under section 132; assessment under section 153C was insufficient.

Penalty under section 271AAA is attracted only where a search is initiated under section 132 and undisclosed income is found as a result of that search. Where the assessment is made under section 153C and the record does not show any search in the assessee's case, the foundational condition for levy is absent. On those facts, the penalty under section 271AAA was held unsustainable and was deleted.

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Issues: Whether penalty under section 271AAA of the Income-tax Act, 1961 was leviable where the assessment was made under section 153C and no search had been initiated in the assessee's case.

Analysis: Penalty under section 271AAA applies only where a search is initiated under section 132 and undisclosed income is found as a result of such search. The record showed that the assessee's return was filed in response to notice under section 142 and the assessment proceedings were under section 153C. There was no material to show that a search had been initiated in the assessee's case, and therefore the foundational condition for invoking section 271AAA was absent.

Conclusion: Penalty under section 271AAA was not sustainable and was deleted.

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