Special procedure for assessment of search cases

With effect from 1.7.95, special procedure for assessment of search cases has been prescribed in chapter XIV-B of the I.T. Act. Broadly, this scheme envisages assessment of a 'block period' consisting of ten years preceding the year in which search was conducted and the period till the date of search. Tax @ 60% is charged on undisclosed income relating to the block period. The block assessment has to be made within two years from the end of the month in which searches were completed. No penalty is leviable on undisclosed income that is now disclosed by the assessee, and on which full taxes have been paid/adjusted before filing of the return for the block period. However, delay in filing the return of block period, delay/non-payment of tax now due or failure to disclose fully the income that was hitherto undisclosed shall lead to levy of interest/penalty u/s 158BFA.