Section 158BC - Procedure for block assessment - Income-tax Act, 1961

4 [ Procedure for block assessment. 158BC. (1) Where any search has been initiated under section 132 or books of account, other documents or assets are requisitioned under section 132A, in the case of any person, then, (a) the Assessing Officer shall, in respect of search initiated, or books of account or other documents or any assets requisitioned, on or after the 1st day of September, 2024, issue a notice to such person, requiring him to furnish within such period, not exceeding a period of sixty days, as may be specified in the notice, a return in the form and verified in the manner, as may be prescribed, setting forth his 5 [ **** ] undisclosed income, for the block period: Provided that such return shall be considered as if it was a return furnished under the provisions of section 139 and notice under sub-section (2) of section 143 shall thereafter be issued: Provided further that any return of income, required to be furnished by an assessee under this section and furnished beyond the period allowed in the notice shall not be deemed to be a return under section 139: Provided also that no notice under section 148 is required to be issued for the purpose of proceeding under this Chapter: Provided also that a person who has furnished a return under this clause shall not be entitled to furnish a revised return; 6 [Provided also that the time allowed for furnishing a return under this clause may be extended by a further period of thirty days, where (i) in respect of a previous year immediately preceding the previous year in which the search is initiated or requisition is made, the due date for furnishing the return has not expired prior to the date of initiation of such search or requisition; (ii) the assessee was liable for audit under section 44AB for such previous year; (iii) the accounts (maintained in normal course) of such previous year have not been audited on the date of issuance of such notice; and (iv) the assessee requests in writing for extension of time for furnishing such return to get such accounts audited; ] (b) the Assessing Officer shall proceed to determine the 7 [ total undisclosed income ] of the block period in the manner laid down in section 158BB and the provisions of section 142, sub-sections (2) and (3) of section 143, section 144, section 145, section 145A and section 145B shall, so far as may be, apply; (c) the Assessing Officer, on determination of the 8 [ total undisclosed income ] of the block period in accordance with this Chapter, shall pass an order of assessment or reassessment and determine the tax payable by him on the basis of such assessment or reassessment: Provided that nothing in the provisions of section 144C shall apply in respect of such order: 9 [ **** ] (d) the assets seized under section 132 or requisitioned under section 132A shall be dealt with in accordance with the provisions of section 132B. (2) The provisions of sub-section (1) of section 143 shall not apply to the return furnished under this section. (3) The Assessing Officer, before issuance of notice under clause (a) of sub-section (1), shall take prior approval of the Additional Commissioner or the Additional Director or the Joint Commissioner or the Joint Director, as the case may be. ] *************** NOTES:- 1. Substituted by the Income-tax (Amendment) Act, 1997, w.e.f. 1-1-1997. 2. Substituted for and section 144 by the Finance Act, 2002, w.r.e.f. 1-7-1995. 3 . Substituted, by the Finance Act, 2002, w.r.e.f. 1-7-1995., w.e.f. 1-6-2002. Prior to its substitution, clause (d) read as under : (d) the assets seized under section 132 or requisitioned under section 132A shall be retained to the extent necessary and the provisions of section 132B shall apply subject to such modifications as may be necessary and the references to regular assessment or reassessment in section 132B shall be construed as references to block assessment . 4. Substituted vide Section 49 of the Finance (No. 2) Act, 2024 dated 16-08-2024 w.e.f. 01-09-2024 before it was read as, Procedure for block assessment. 158BC. Where any search has been conducted under section 132 or books of account, other documents or assets are requisitioned under section 132A, in the case of any person, then,- 1 [( a ) the Assessing Officer shall- ( i ) in respect of search initiated or books of account or other documents or any assets requisitioned after the 30th day of June, 1995, but before the 1st day of January, 1997, serve a notice to such person requiring him to furnish within such time not being less than fifteen days; ( ii ) in respect of search initiated or books of account or other documents or any assets requisitioned on or after the 1st day of January, 1997, serve a notice to such person requiring him to furnish within such time not being less than fifteen days but not more than forty-five days, as may be specified in the notice a return in the prescribed form and verified in the same manner as a return under clause ( i ) of sub-section (1) of section 142, setting forth his total income including the undisclosed income for the block period : Provided that no notice under section 148 is required to be issued for the purpose of proceeding under this Chapter : Provided further that a person who has furnished a return under this clause shall not be entitled to file a revised return;] ( b ) the Assessing Officer shall proceed to determine the undisclosed income of the block period in the manner laid down in section 158BB and the provisions of section 142, sub-sections (2) and (3) of section 143 2 [, section 144 and section 145] shall, so far as may be, apply; ( c ) the Assessing Officer, on determination of the undisclosed income of the block period in accordance with this Chapter, shall pass an order of assessment and determine the tax payable by him on the basis of such assessment; 3 [( d ) the assets seized under section 132 or requisitioned under section 132A shall be dealt with in accordance with the provisions of section 132B.] 5. Omitted vide Section 51 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-09-2024 before it was read as, total income, including the 6. Inserted vide Section 51 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-09-2024 7. Substituted vide Section 51 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-09-2024 before it was read as, total income including the undisclosed income 8. Substituted vide Section 51 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-09-2024 before it was read as, total income 9. Omitted vide Section 51 of the Finance Act, 2025 dated 29-03-2025 w.e.f. 01-09-2024 before it was read as, Provided further that where the order of assessment or reassessment is made in pursuance of section 158BD, the block period for such assessment or reassessment shall be the same as that determined in respect of the person in whose case search was made under section 132, or whose books of account or other documents or any assets were requisitioned under section 132A, and proceedings under section 158BD were initiated due to such search or requisition, as the case may be;