https://www.taxtmi.com/caselaws?id=59526 Penalty under section 158BFA(2) of the Income-tax Act, 1961 is not automatic on the difference between assessed undisclosed income and returned income under section 158BC; the provision is discretionary because it uses "may" and requires reasonable opportunity before levy. Penalty proceedings are distinct from assessment proceedings, so the authority must consider the assessee's bona fides and surrounding circumstances before imposing penalty. Where no incriminating material was found in search and the revised return was filed after the relevant facts came to light, the omission may be treated as bona fide and penalty may be deleted. en-us Fri, 11 Nov 2005 00:00:00 +0530 Thu, 30 Dec 2010 14:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59526 Penalty under section 158BFA(2) of the Income-tax Act, 1961 is not automatic on the difference between assessed undisclosed income and returned income under section 158BC; the provision is discretionary because it uses "may" and requires reasonable opportunity before levy. Penalty proceedings are distinct from assessment proceedings, so the authority must consider the assessee's bona fides and surrounding circumstances before imposing penalty. Where no incriminating material was found in search and the revised return was filed after the relevant facts came to light, the omission may be treated as bona fide and penalty may be deleted. Case-Laws Income Tax Fri, 11 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59526