Penalty where search has been initiated

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....ied previous year, if such assessee- (i)  in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived; (ii)  substantiates the manner in which the undisclosed income was derived; and (iii) on or before the specified date- (A)  pays the tax, together with interest, if any, in respect of the undisclosed income; and (B)  furnishes the return of income for the specified previous year declaring such undisclosed income therein; (b)  a sum computed at the rate of twenty per cent of the undisclosed income of the specified previous year, if such assessee- ....

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....or before the specified date- (A) pays the tax, together with interest, if any, in respect of the undisclosed income; and (B) furnishes the return of income for the specified previous year declaring such undisclosed income therein; (b) a sum computed at the rate of sixty per cent. of the undisclosed income of the specified previous year, if it is not covered under the provisions of clause (a).] (2) No penalty under the provisions of ^4[section 270A or] clause (c) of sub-section (1) of section 271 shall be imposed upon the assessee in respect of the undisclosed income referred to in sub-section (1)^ 7[or sub-section (1A)]. (3) The provisions of sections 274 and 275 shall, as far as may be, apply in relation t....

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....te of search; or (ii) any income of the specified previous year represented, either wholly or partly, by any entry in respect of an expense recorded in the books of account or other documents maintained in the normal course relating to the specified previous year which is found to be false and would not have been found to be so had the search not been conducted.]     *************** NOTES:- 1. Inserted vide Section 101 of the Finance Act, 2012 w.e.f. 01-07-2012 2. Inserted vide Section 4 of the Finance (No. 2) Act, 2014 w.e.f. 01-06-2013 3.  Substituted vide Section 103 of the Finance Act, 2016 w.e.f. 01-04-2017 before it was read as, "which shall not be less than....