The assessee admitted an undisclosed income of Rs. 2,27,65,580/-which according to the revenue was offered by the assessee during the course of investigation. The Deputy Commissioner of Income tax imposed a penalty under Section 271AAA amounting to Rs.47,80,261/-which was partly confirmed by the Tribunal. The Court dismissed the appeal by deciding in favor of revenue. The court held that it was mandatory to follow all three conditions as listed down by the sub-section (2) of the section 271AAA which was not complied by the assessee and refused to reduce the quantum of penalty as the income was undisclosed at the time of filing the return. Appeal of assessee is dismissed. (AY. 2011-12)