Clause 292 - Assessment of income pertaining to the block period.

Block assessment procedure mandates assessing total block-period income on initiation of a search or requisition, suspending overlapping proceedings.

Block assessment procedure requires the Assessing Officer to assess or reassess the total income of the block period upon initiation of a search or requisition; pending assessments, reassessments or recomputations for tax years within the block period abate, and related references or orders abate as well. Subsequent searches require completion of the prior Chapter assessment before a new Chapter assessment, with prescribed extension where necessary. Annulment of Chapter proceedings revives previously abated proceedings upon receipt of the annulment order, subject to cessation if that annulment is set aside. Income of the tax year of the last search is assessed separately, and the total block income is taxed at the specified rate irrespective of tax years.