Income Tax Act, 2025
Section 4: Subs. by s. 65, ibid., for clause (c) (w.e.f. 11995).
4. Subs. by s. 65, ibid., for clause (c) (w.e.f. 11995).
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(f) where an assessment of undisclosed income had been made earlier under clause (c) of
section 158BC, on the basis of such assessment.
Explanation.—For the purposes of determination of undisclosed income,—
(a) the total income or loss of each previous year shall, for the purpose of aggregation, be taken
as the total income or loss computed in accordance with the provisions of 1[this Act] without giving
effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under
sub-section (2) of section 32:
2[Provided that in computing deductions under Chapter VIA for the purposes of the said
aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed
depreciation under sub-section (2) of section 32;]
3[(b) of a firm, returned income and total income assessed for each of the previous years falling
within the block period shall be the income determined before allowing deduction of salary, interest,
commission, bonus or remuneration by whatever name called 4[to any partner not being a working
partner]:
Provided that undisclosed income of the firm so determined shall not be chargeable to tax in the
hands of the partners, whether on allocation or on account of enhancement;]
(c) assessment under section 143 includes determination of income under sub-section (1) or
sub-section (1B) of section 143.
(2) In computing the undisclosed income of the block period, the provisions of
sections 68, 69, 69A, 69B and 69C shall, so far as may be, apply and references to “financial year” in
those sections shall be construed as references to the relevant previous year falling in the block period
including the previous year ending with the date of search or of the requisition.
(3) The burden of proving to the satisfaction of the Assessing Officer that any undisclosed income
had already been disclosed in any return of income filed by the assessee before the commencement of
search or of the requisition, as the case may be, shall be on the assessee.
(4) For the purpose of assessment under this Chapter, losses brought forward from the previous year
under Chapter VI or unabsorbed depreciation under sub-section (2) of section 32 shall not be set off
against the undisclosed income determined in the block assessment under this Chapter, but may be carried
forward for being set off in the regular assessments.
(w.e.f. 11995).
609
where an assessment of undisclosed income had been made earlier under clause
of
section 158BC, on the basis of such assessment.
Explanation.—For the purposes of determination of undisclosed income,—
the total income or loss of each previous year shall, for the purpose of aggregation, be taken
as the total income or loss computed in accordance with the provisions of 1[this Act] without giving
effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under
sub-section
of section 32:
2[Provided that in computing deductions under Chapter VIA for the purposes of the said
aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed
depreciation under sub-section
of section 32;]
3[
of a firm, returned income and total income assessed for each of the previous years falling
within the block period shall be the income determined before allowing deduction of salary, interest,
commission, bonus or remuneration by whatever name called 4[to any partner not being a working
partner]:
Provided that undisclosed income of the firm so determined shall not be chargeable to tax in the
hands of the partners, whether on allocation or on account of enhancement;]
assessment under section 143 includes determination of income under sub-section
or
sub-section
of section 143.
In computing the undisclosed income of the block period, the provisions of
sections 68, 69, 69A, 69B and 69C shall, so far as may be, apply and references to “financial year” in
those sections shall be construed as references to the relevant previous year falling in the block period
including the previous year ending with the date of search or of the requisition.
The burden of proving to the satisfaction of the Assessing Officer that any undisclosed income
had already been disclosed in any return of income filed by the assessee before the commencement of
search or of the requisition, as the case may be, shall be on the assessee.
For the purpose of assessment under this Chapter, losses brought forward from the previous year
under Chapter VI or unabsorbed depreciation under sub-section
of section 32 shall not be set off
against the undisclosed income determined in the block assessment under this Chapter, but may be carried
forward for being set off in the regular assessments.