Undisclosed Income Source must be Specified and Substantiated u/s 271-AAA(2): SC upholds Penalty for Non-Compliance

The Supreme Court upheld the penalty under Section 271(AAA) of the Income Tax Act for undisclosed income, emphasizing that the source of the income must be specified and substantiated. The case involved a taxpayer who had failed to provide proper documentation or proof for certain undisclosed income. The Court ruled that, under Section 271(AAA), taxpayers must not only disclose the income but also substantiate its source. The decision highlights the importance of maintaining clear records and providing adequate justification for any income that is not declared in the tax return. This ruling serves as a reminder of the stringent requirements for taxpayers under the Income Tax Act and the need for thorough documentation.