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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Under the Income-tax Act, 2025, a block assessment order for a person searched has been annulled in appeal, and the earlier regular assessment for a tax year in the block period had abated under section 292(2). Which statement is correct?

The abated proceeding revives with effect from the date the Principal Commissioner or Commissioner receives the annulment order. If that annulment order is later set aside, the revival ceases to have effect. It does not revive from the search date or from the end of the year.

  1. AThe abated assessment revives from the date the Principal Commissioner or Commissioner receives the annulment order, and the revival ceases if the annulment is set asideCorrect
  2. BThe abated assessment revives from the date of the original search
  3. CThe abated assessment is permanently extinguished and cannot be revived
  4. DThe abated assessment revives from the end of the tax year in which the annulment order was passed

Explanation

Section 292(5) says the abated assessment, reassessment, recomputation, reference or order revives with effect from the date of receipt of the annulment order by the Principal Commissioner or Commissioner. Under 292(5)(b), the revival ceases to have effect if the annulment order is set aside. Revival from the search date or the year-end is not provided.

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