Tribunal held that   once the assessee had surrendered the amount during the course of search, there was no basis to state that there was no undisclosed income. The Assessing Officer made the assessee aware of the charge against it and the assessee was granted an opportunity to refute the charge and file its explanations and submissions. Therefore, the assessee was liable for penalty under section 271AAB(1)(a) at 10 per cent. on the undisclosed income. There was no infirmity in the initiation of penalty proceedings and consequent penalty order passed by the Assessing Officer. In respect of the difference in valuation of stock of Rs. 57,87,509 the Assessing Officer had merely gone by the surrender statement where the stock had been valued at the market price as on the date of search and had not examined the matter from the perspective of determining any excess stock and the cost of such stock which was not recorded in the books of account. There was no finding that there was any excess stock which had been physically found and which had not been recorded in the books of account. The difference between the stock of goods as shown in the books and as found at the time of search was on account of valuation of such stock at the market value instead of cost and it could not be the basis to hold that it represented undisclosed income so defined in the Explanation to section 271AAB of the Act. Therefore, the penalty levied was unsustainable. (AY. 2015-16)