Sections 158BG, 158BH and 158BI of the Income-tax Act, 1961: Block Assessment Provisions
Sections 158BG, 158BH and 158BI formed part of the earlier Chapter XIV-B special procedure for assessment of search cases. They dealt respectively with the authority competent to make a block assessment, application of other provisions of the Act, and the date after which that historical Chapter ceased to apply.
Section 158BG - Authority competent to make the block assessment
Section 158BG prescribed the minimum rank of the income-tax authority competent to pass an order of assessment for the block period under the former Chapter XIV-B. The assessment order was required to be passed by an Assessing Officer not below the rank specified in the provision.
For searches initiated, or requisitions made, after 30 June 1995 but before 1 January 1997, the assessment required previous approval of the Principal Commissioner or Commissioner, or the Principal Director or Director, as applicable. For a search initiated or requisition made on or after 1 January 1997 within the period governed by that Chapter, previous approval of the Joint Commissioner or Joint Director, as applicable, was required.
The purpose of the provision was to place block assessments arising from search and requisition cases under a specified level of administrative authority and prior supervisory approval.
Section 158BH - Application of other provisions of the Act
Section 158BH provided that, except where Chapter XIV-B itself provided otherwise, the other provisions of the Income-tax Act, 1961 applied to an assessment made under that Chapter.
In practical terms, Chapter XIV-B operated as a special assessment code for the covered search cases, while the general provisions of the 1961 Act continued to apply to the extent they were not displaced or modified by the special provisions.
Section 158BI - Chapter not to apply after certain date
Section 158BI provided the temporal cut-off for the old Chapter XIV-B regime. It stated that the Chapter would not apply where a search under section 132 was initiated, or books of account, other documents or assets were requisitioned under section 132A, after 31 May 2003.
Accordingly, sections 158BG, 158BH and 158BI on this page concern the former block-assessment framework and should not be read as the general regime for later searches merely because their section numbers remain relevant to older proceedings.
Meaning of the connected provisions
| Provision | Subject | Function |
|---|---|---|
| Section 132 | Search and seizure | Provided statutory authority for specified income-tax search and seizure action under the 1961 Act. |
| Section 132A | Requisition | Dealt with requisition of books of account, documents or assets in circumstances specified by the 1961 Act. |
| Section 158BG | Competent authority | Specified the level of Assessing Officer and the previous approval required for old Chapter XIV-B block assessments. |
| Section 158BH | Other provisions | Applied the other provisions of the 1961 Act unless Chapter XIV-B provided otherwise. |
| Section 158BI | Cut-off | Excluded searches or requisitions after 31 May 2003 from the former Chapter XIV-B regime. |
Income-tax law from 1 April 2026
The Income-tax Act, 2025 came into force on 1 April 2026 and replaced the Income-tax Act, 1961 for the new tax-year framework. The official Income Tax Department has clarified that matters relating to earlier periods continue under the 1961 Act in accordance with the transitional provisions. For current compliance, the applicable Act therefore depends on the tax year and the nature of the proceeding.
This article is intended as a statutory overview. The applicable provision should be checked with reference to the date of search or requisition, the relevant tax period, amendments, savings and transitional provisions.