If Additions based on seized materials sustained, penalty is warranted

When assessee fails to declare the undisclosed income in block return, and the additions made by the AO based on the seized materials are sustained, penalty is warranted in such a case. Triumph International Finance I Ltd Vs ACIT (ITAT Mumbai)– the undisclosed income determined in the case of the assessee is not as a result of disallowing any claim of the assesse because the same is not allowable as per the provisions of law but undisclosed income has been determined on the basis of the evidences found during the course of search, which has established the fact that the true nature of tr...