Section 158BC of the Income Tax Act
Income-tax Act, 2025: s.294
Section 158BC of the Income-tax Act, 1961 corresponds to section 294 (Procedure for block assessment) of the Income-tax Act, 2025.
Read section 294 of the 2025 Act
Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.
The decision most relied on for Section 158BC is MDLR Resorts Private Limited v. CIT (40 Taxmann.com 365), cited in 14 of the 487 judgments on BharatTax that turn on this section.
Leading authorities on Section 158BC
A search is held to be valid when conducted under similar facts and circumstances, as decided by the Delhi High Court.
Only the profit element embedded in 'on money' receipts, or a reasonable percentage of such 'on money', can be taxed. This principle applies even when expenditure is incurred outside the books of accounts, as evidenced by seized papers.
A notice issued under section 153A of the Income Tax Act to a non-existing or deceased person is invalid in law.
An Income Tax Appellate Tribunal (ITAT) cannot adjudicate on the validity of a search conducted under section 132 of the Income Tax Act, 1961, when disposing of an appeal against a block assessment.
