Section 158BC of ITA, 1961 : Section 158Bc: Procedure For Block Assessment

Explanation using Example

Imagine a scenario where the Income Tax Department conducts a raid on Mr. Sharma's premises on suspicion of tax evasion. During the raid, they find undisclosed income and seize certain documents and assets on January 15, 2021. Following this search and seizure:

1. The Assessing Officer (AO) will issue a notice to Mr. Sharma asking him to file a return of his total income, including the undisclosed income, for the block period of the last 10 years. This notice will specify a deadline within 15 to 45 days for filing the return.
2. Mr. Sharma must comply with the notice and file the return within the given timeframe, detailing all his income, including any undisclosed income discovered during the raid.
3. The AO will then determine Mr. Sharma's undisclosed income for the block period using the procedures outlined in the Income-tax Act and calculate the tax liability based on this assessment.
4. Finally, the AO will issue an order of assessment, and Mr. Sharma will be required to pay the determined tax. The seized assets will be processed as per the provisions of the Act.

Note that Mr. Sharma cannot file a revised return after submitting the return in response to the notice under Section 158BC, and no separate notice under Section 148 is needed for this process.