Disclosing Bank Account

Hi all

This is regarding my Uncle's Individual Tax Assessment for FY 07-08

He opened a bank account- type of a/c- CLSB A/C- in the year 2005... However in that year his CA did not disclose his accounts in the book... All his major transactions  - in white- are undertaken through this account... He had taken a house loan last year whose payment is also made through this account..... The interest earned on this was disclosed in the books last year, but the bank account was not...

He wishes to disclose this account this year and also wishes to claim dedustion u/s 80c and 24b with repect to his home loan.....

Will there be any penalty or complications ?????

Kindly Guide..

Thank You..