The Tribunal held that the assessee duly disclosed the transactions reflected in the diaries in the returns filed pursuant to the notice under section 153A and paid taxes thereon. Hence, all the three conditions for claiming immunity from levy of penalty, viz., declaration made under section 132(4) by duly substantiating the manner in which such undisclosed income was derived ; including those undisclosed income in the return filed under section 153A and the payment of taxes thereon, were duly complied with by the assessee in the instant case. Hence, the case of the assessee fell within clause 2 of Explanation 5 to section 271(1)(c) wherein immunity from levy of penalty is squarely provided in the statute itself. In respect of penalty on additions made during the course of assessments for the three assessment years, i. e., assessment years 2001-02, 2003-04 and 2007-08, the penalty was to be deleted because the Assessing Officer had not mentioned the specific offence committed by the assessee in the quantum assessment order (thus improperly recording satisfaction) and also for initiating penalty under one limb and levying penalty under the other limb of the alleged offence. By this, the penalty levied for the three assessment years in the sum was deleted. (AY.2001-02 to 2007-08)