Incometax Survey 133A - Urgent

• The IT department will likely initiate the block assessment process under Sections 158B to 158BI of the Income Tax Act.

• The department will issue notices for block assessment covering the block period.

• The assessee will be required to file returns or disclose income for the entire block period.

• All relevant details and documents relating to the income for these years will be scrutinized and examined together.

• Undisclosed income identified may be taxed at a higher rate along with applicable penalties.

• The department has to complete the block assessment within a stipulated time limit (usually 12 months from the end of the month in which survey was conducted).

• Yes, the assessee should expect notice under section 148 (income escaping assessment) for the previous years included in the block assessment.

• Notices may be issued to re-open assessment for the years falling in the block period if the income was found undisclosed.

• However, the block assessment itself provisions the assessment of the whole block period together, so the 148 notices would be part of this block assessment process.

Specific Procedures for Survey Cases

• A survey is a preliminary activity to examine records at premises to identify any undisclosed income or transactions.

• During survey, statement and evidences about additional income are recorded.

• Based on survey findings, the department may initiate block assessment for prior years.

• The procedures include formal notice issuance, assessment orders, filing of returns for block period, determination of total undisclosed income, levy of tax and penalties.

• The block assessment essentially subsumes earlier assessment procedures for that block period to allow a consolidated and expedited assessment process.

Thank you very much Sir. This answers my question... Thanks so much

My pleasure...             

Just one more question sir. Whether this covers survey allied to search or independent survey also. Because, the assessee is an accounting professional and survey is conducted w.r.t his profession. All surveys covered for block assessment?

The assessment after a survey of an assessee's house (professional accountant) conducted in May 2025 and disclosure of additional income from FY 2019-20 to FY 2026-27 (running year) will generally NOT be on the block assessment concept—unless the survey was connected to a "search" under the Income Tax Act.

For survey cases that are not allied with a search, regular reassessment procedures apply—including the possibility of issuing notices under section 148 for previous years if undisclosed income is detected.

It does NOT automatically trigger a block assessment—unless further investigation leads to a search.

For cases allied to search, block assessment may apply; for independent survey, regular procedures follow.

This is very clear sir. Thank you again..

You are welcome....