Section 158B of Income Tax Act "Definitions"
158B. In this Chapter, unless the context otherwise
requires,-
(a) "block period" means the period comprising previous
years relevant to six assessment years preceding the
previous year in which the search was conducted under
section 132 or any requisition was made under section 132A
and also includes the period up to the date of the
commencement of such search or date of such requisition in
the previous year in which the said search was conducted or
requisition was made :
Provided that where the search is initiated or the
requisition is made before the 1st day of June, 2001, the
provisions of this clause shall have effect as if for the
words "six assessment years", the words "ten assessment
years" had been substituted;
(b) "undisclosed income" includes any money, bullion,
jewellery or other valuable article or thing or any income
based on any entry in the books of account or other
documents or transactions, where such money, bullion,
jewellery, valuable article, thing, entry in the books of
account or other document or transaction represents wholly
or partly income or property which has not been or would not
have been disclosed for the purposes of this Act, or any
expense, deduction or allowance claimed under this Act which
is found to be false.
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.
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.