Penalty where search has been initiated— a search and seizure operation u/s 132(1) was conducted wherein, cash was found and seized in assesses office premises. Thereafter, notice u/s 153A was issued and in response assesse filed return of income declaring income. During assessment proceeding, AO noted that assesse owned up entire cash seized as his undisclosed and admitted that it was out of his income and offered to taxation. AO completed the assessment by recording that penalty proceedings u/s 271AAB was being initiated separately. CIT(A) confirmed AO’s action and held that there was no dispute in respect of date of search and seizure operation on 24.04.2014. Therefore, applicability of section 271AAB was justified. There was no dispute in owning cash seized during search and seizure operation as undisclosed income of assesse which was out of his professional income. There was no dispute that assesse offering same for taxation. There was no dispute in respect of payment of tax together with interest in respect of undisclosed income. There was no dispute in respect of filing of return of income to specified PY declaring such undisclosed income. Therefore, the present case fulfilled conditions as contemplated clause (a) in sub-section (1) of s. 271AAB to impose penalty. Therefore, no infirmity was found in order of CIT(A) and confirming penalty imposed by AO u/s 271AAB (a).  Action of imposition of penalty u/s 271AAB(a) was independent of enquiries made and subsequent additions made during course of assessment proceedings. This penalty was not based upon facts gathered during course of assessment proceeding and the assesse appeal was dismissed.