Assessment of income pertaining to the block period
[Section-292 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 292(1) of Income Tax Act 2025
292(1) Irrespective of any other provision of this Act, where on or after the commencement of this Act, in the case of any person, search is initiated or requisition is made, then, the Assessing Officer shall proceed to assess or reassess the total income of the block period as per this Chapter.
Section 292(2) of Income Tax Act 2025
292(2) The assessment or reassessment or recomputation proceedings under the provisions of this Act (other than this Chapter), if any, pertaining to any tax year falling in the block period, pending on the date of initiation of search, or the date of making of requisition, shall abate and shall be deemed to have been abated on such date.
Section 292(3) of Income Tax Act 2025
292(3) If any reference has been made under section 166(1) or order has been passed under section 166(6), the assessment or reassessment or recomputation proceedings, referred to in sub-section (2) together with such reference or order shall abate on the date referred to in sub-section (2).
Section 292(4) of Income Tax Act 2025
292(4) If any assessment under the provisions of this Chapter is required to be made in the case of an assessee, in whose case a search is initiated or a requisition is made subsequently––
- (a) such pending assessment shall be duly completed;
- (b) assessment in respect of such subsequent search or requisition shall be made thereafter under the provisions of this Chapter; and
- (c) if the period available for assessment in clause (b) is less than three months, such period shall be extended to three months from the end of the month in which the assessment, as referred to in clause (a) was completed.
Section 292(5) of Income Tax Act 2025
292(5) Irrespective of anything contained in any other provision of this Act, if any proceeding initiated or completed under this Chapter has been annulled in an appeal or any other legal proceeding, then––
- (a) the assessment or reassessment or recomputation or reference or order which has abated under sub-section (2) or (3), shall revive with effect from the date of receipt of the order of such annulment by the Principal Commissioner or Commissioner;
- (b) the revival, as referred to in clause (a) shall cease to have effect, if such order of annulment is set aside.
Section 292(6) of Income Tax Act 2025
292(6) The income (other than undisclosed income) of the tax year in which the last of the authorisations for a search is executed or a requisition is made, shall be assessed separately as per other provisions of this Act.
Section 292(7) of Income Tax Act 2025
292(7) The total income pertaining to the block period, as referred to in section 293(5) shall be charged to tax at the rate specified in section 192, irrespective of the tax year or years to which such income pertains.
FAQs on Section 292 of Income Tax Act 2025
What is meant by assessment of income pertaining to the block period under Section 292?
It refers to the assessment or reassessment of the total income of a person for the block period when a search is initiated or a requisition is made, regardless of any other provisions of the Act.
What happens to ongoing assessment or reassessment proceedings when a search or requisition occurs?
All such proceedings related to any tax year in the block period that are pending on the date of initiation of search or making of requisition shall abate and be deemed to have abated on that date.
Does the abatement under Section 292(2) include references or orders under Section 166?
Yes, if a reference under Section 166(1) or an order under Section 166(6) exists, they too shall abate along with the assessment, reassessment, or recomputation proceedings on the date of search or requisition.
How are cases handled where a second search or requisition occurs after a pending assessment under this Chapter?
The pending assessment is to be completed first. After that, the assessment related to the subsequent search or requisition will be done under this Chapter. If the time left is less than three months, the period will be extended to three months from the end of the month in which the first assessment was completed.
What if the proceeding under this Chapter is annulled in appeal or legal proceedings?
Then the earlier abated assessments, reassessments, recomputations, references, or orders shall revive from the date of receipt of annulment order by the Principal Commissioner or Commissioner. However, this revival ceases if the annulment order is later set aside.
How is income of the tax year in which search is executed or requisition made assessed?
Such income (excluding undisclosed income) is assessed separately as per the other provisions of the Act, not under this Chapter.
At what rate is income of the block period charged to tax?
As per Section 292(7), the total income for the block period is charged to tax at the rate specified in Section 192, regardless of the tax years involved.
What does the term “block period” refer to in the context of Section 292?
It refers to the period for which the total income is assessed under this Chapter when a search or requisition has been conducted, as further detailed in Section 293(5).
Does the Act override other provisions when applying Section 292?
Yes, Section 292 explicitly states that its provisions apply notwithstanding anything to the contrary in any other provisions of the Act.
Can the Assessing Officer ignore pending proceedings when a search occurs?
Yes, all such pending assessments or reassessments for tax years in the block period abate and fresh assessment is conducted for the block period under this Chapter.
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