(1) Notwithstanding anything contained in any other provisions of this Act, where after the 30th day of June, 1995 a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of any person, then, the Assessing Officer shall proceed to assess the undisclosed income in accordance with the provisions of this Chapter.
(2) The total undisclosed income relating to the block period shall be charged to tax, at the rate specified in section 113, as income of the block period irrespective of the previous year or years to which such income relates and irrespective of the fact whether regular assessment for any one or more of the relevant assessment years is pending or not.
1 Explanation.-For the removal of doubts, it is hereby declared that-
(a) the assessment made under this Chapter shall be in addition to the regular assessment in respect of each previous year included in the block period;
(b) the total undisclosed income relating to the block period shall not include the income assessed in any regular assessment as income of such block period;
(c) the income assessed in this Chapter shall not be included in the regular assessment of any previous year included in the block period.
(3) Where the assessee proves to the satisfaction of the Assessing Officer
that any part of income referred to in sub-section (1) relates to an assessment
year for which the previous year has not ended or the date of filing the return
of income under sub-section (1) of section 139 for any previous year has not
expired, and such income or the transactions relating to such income are
recorded on or before the date of the search or requisition in the books of
account or other documents maintained in the normal course relating to such
previous years, the said income shall not be included in the block period.
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1. Ins. by Act 21 of 1998, s. 44 (w.e.f. 1-7-1995).
Section 158BA Assessment of undisclosed income as a result of search
Section 158BB Computation of undisclosed income of the block period
Section 158BC Procedure for block assessment
Section 158BD Undisclosed income of any other person
Section 158BE Time limit for completion of block assessment
Section 158BF Certain interests and penalties not to be levied or imposed
Section 158BFA Levy of interest and penalty in certain cases
Section 158BG Authority competent to make the block assessment
Section 158BH Application of other provisions of this Act
Section 158BI Chapter not to apply after certain date