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

Under the Income-tax Act, 2025, in a search case, a regular assessment for a tax year falling in the block period is pending on the date the search is initiated. What is the effect on that pending proceeding?

The pending proceeding abates, and is deemed to have abated, on the date the search is initiated or the requisition is made. This happens by operation of law without any order from the Assessing Officer, and the total undisclosed income is then assessed under the block assessment provisions.

  1. AIt abates and is deemed to have abated on the date of initiation of searchCorrect
  2. BIt continues and is completed before the block assessment begins
  3. CIt is stayed and revives automatically after the block assessment is made
  4. DIt abates only if the Assessing Officer passes a specific order to that effect

Explanation

Section 292(2)(a) provides that pending assessment, reassessment or recomputation proceedings for a tax year in the block period abate, and are deemed abated, on the date of initiation of search or requisition. No order by the Assessing Officer is needed, and there is no automatic revival except on annulment as per section 292(5).

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