ITAT ruled against penalty imposition under s.271AAB(1A)(b) at...

ITAT ruled against penalty imposition under s.271AAB(1A)(b) at 60% rate. The tribunal emphasized that mere voluntary disclosure during search proceedings does not constitute 'undisclosed income' for penalty purposes. No incriminating materials were discovered during the search substantiating undisclosed assets in form of money, bullion, jewelry, or unrecorded transactions. The tribunal held that market adjustments claimed by assessee did not qualify as undisclosed income under Explanation (c) to s.271AAB. Penalty requires discovery of undisclosed income during search as a prerequisite condition. Voluntary offer to pay additional tax to avoid litigation cannot be basis for penalty. The ITAT directed AO to delete the penalty assessment.