Income Tax Act, 2025
Section 12: Ins. by Act 23 of 2012, s. 100 (w.e.f. 12012).
12. Ins. by Act 23 of 2012, s. 100 (w.e.f. 12012).
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(2) Nothing contained in sub-section (1) shall apply if the 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) pays the tax, together with interest, if any, in respect of the undisclosed income.
(3) No penalty under the provisions of 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).
(4) The provisions of sections 274 and 275 shall, so far as may be, apply in relation to the penalty
referred to in this section.
Explanation.—For the purposes of this section,—
(a) “undisclosed income” means—
(i) any income of the specified previous year represented, either wholly or partly, by any
money, bullion, jewellery or other valuable article or thing or any entry in the books of account or
other documents or transactions found in the course of a search under section 132, which has—
(A) not been recorded on or before the date of search in the books of account or other
documents maintained in the normal course relating to such previous year; or
(B) otherwise not been disclosed to the 1[Principal Chief Commissioner or Chief
Commissioner] or 2[Principal Commissioner or Commissioner] before the date 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;
(b) “specified previous year” means the previous year—
(i) which has ended before the date of search, but the date of filing the return of income under
sub-section (1) of section 139 for such year has not expired before the date of search and the
assessee has not furnished the return of income for the previous year before the said date; or
(ii) in which search was conducted.]
Nothing contained in sub-section
shall apply if the assessee,—
in the course of the search, in a statement under sub-section
of section 132, admits the
undisclosed income and specifies the manner in which such income has been derived;
substantiates the manner in which the undisclosed income was derived; and
pays the tax, together with interest, if any, in respect of the undisclosed income.
No penalty under the provisions of clause
of sub-section
of section 271 shall be imposed
upon the assessee in respect of the undisclosed income referred to in sub-section
The provisions of sections 274 and 275 shall, so far as may be, apply in relation to the penalty
referred to in this section.
Explanation.—For the purposes of this section,—
“undisclosed income” means—
any income of the specified previous year represented, either wholly or partly, by any
money, bullion, jewellery or other valuable article or thing or any entry in the books of account or
other documents or transactions found in the course of a search under section 132, which has—
not been recorded on or before the date of search in the books of account or other
documents maintained in the normal course relating to such previous year; or
otherwise not been disclosed to the 1[Principal Chief Commissioner or Chief
Commissioner] or 2[Principal Commissioner or Commissioner] before the date of search; or
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;
“specified previous year” means the previous year—
which has ended before the date of search, but the date of filing the return of income under
sub-section
of section 139 for such year has not expired before the date of search and the
assessee has not furnished the return of income for the previous year before the said date; or
in which search was conducted.]