Assessment
of undisclosed income as a result of search.
158BA. (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.
86[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.
