During a search and seizure operation conducted at the business and residential premises of the assessee under section 132(1), the assessee surrendered additional income in the statement under section 132(4) and declared in the return filed for the assessment year 2010-11. The surrendered income included the amount on account of excess stock and an amount as income from other sources. The assessee could not explain certain seized documents but stated that those could be included to form part of the amounts surrendered during the search and seizure operation and paid the tax with interest on the surrendered income. The Assessing Officer levied penalty under section 271AAA. The Commissioner (Appeals) deleted the penalty on the ground that if no specific question was put under section 132(4), it could not be concluded that the assessee had failed to reply or specifically substantiate the manner of concealment. On appeal by the Department, the Tribunal held that the assessee had failed to satisfy the conditions laid down in section 271AAA(2) to get the general amnesty under section 271AAA(2) since the assessee had neither specified nor substantiate the manner in which the undisclosed income was derived and accordingly confirmed the penalty. On appeal  dismissing the appeal, that the assessee had failed to discharge the obligation under section 271AAA(2) of specification of the manner in which the undisclosed income had been derived and thereafter substantiate such disclosures. The imposition of penalty is dependent not merely on the disclosure of income having been made in the course of statement recorded under section 132(4). The order of the Tribunal confirming levy of penalty under section 271AAA is  not erroneous. (AY. 2010-11)