Assessment of Undisclosed Income of Any Other Person
Introduction
Section 158BD governs cases where undisclosed income detected during a search under Section 132 or requisition under Section 132A pertains to a person other than the person searched (specified person). In such situations, the Assessing Officer (AO) who conducted the search must transfer the seized or requisitioned material and related information to the AO having jurisdiction over the “other person,” who will then undertake block assessment proceedings.
Block period of the other person
The first proviso to Section 158BD prescribes how to determine the block period for the other person:
- Where the search involves one specified person
The block period for the other person is identical to that of the specified person.
- Where the search involves multiple specified persons
The block period for the other person shall be the same as that of the specified person whose block period ends on the latest date. This ensures uniformity where multiple search cases are linked to the undisclosed income of a common other person.
Abatement of proceedings for the other person
Sections 158BA(2) and 158BA(3) stipulate the abatement of pending proceedings for assessment, reassessment, or recomputation, including transfer pricing references, for years falling in the block period.
For an “other person,” the second proviso to Section 158BD clarifies that the date of receipt by the jurisdictional AO of the seized material, requisitioned items, or relevant information shall be treated as the date of initiation of search or requisition for the purpose of determining abatement.
This ensures that assessments for the other person are aligned with the timing of material transfer rather than the date of the original search.