Immunity from penalty under Explanation 5 requires payment of tax and interest by the earlier return filing due date.

Explanation 5 affords penalty immunity where an assessee, during a search, admits undisclosed income, explains its derivation and pays tax and interest on that income. The Board's view is that this immunity applies only if the tax and interest on the admitted concealed income are paid by the earlier of the due dates prescribed for filing the return of income under the return-filing provisions.

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