Section 294 — Procedure for block assessment

(1) Where any search has been62 initiated or requisition is made in the case of
any person, then,—
( a) the Assessing Officer shall, in respect of such search or requisition,
issue a notice to such person, requiring him to furnish within a period
specified in the notice, not exceeding sixty days, a return in the form
and verified in the manner, as may be prescribed, setting forth his
undisclosed income, for the block period, and—
( i) such return shall be considered as if it was a return furnished
under section 263 and thereafter notice under section 270(8) shall
be issued;
( ii) any return furnished beyond the period allowed in the notice shall
not be deemed to be a return under section 263;
( iii) no notice under section 280 is required to be issued for the purpose
of proceeding under this part;
( iv) a person who has furnished a return under this clause shall not be
entitled to furnish a revised return;
( v) the time allowed for furnishing a return under this clause may be
extended by a further period of thirty days, where—
( A) in respect of a tax year immediately preceding the tax year in
which the search is initiated or requisition is made, the due
date for furnishing the return has not expired prior to the date
of initiation of such search or requisition;
( B) the assessee was liable for audit under section 63 for such tax
year;
( C) the accounts (maintained in normal course) of such tax year
have not been audited on the date of issuance of such notice;
and
( D) the assessee requests in writing for extension of time for
furnishing such return to get such accounts audited;
( b) the Assessing Officer shall proceed to determine the total undisclosed
income of the block period in the manner laid down in section 293 and
the provisions of sections 268, 270(8), 270(10), 271, 276, 277 and 278
shall, so far as may be, apply;
( c) the Assessing Officer, on determination of the total undisclosed income
of the block period in accordance with this part, shall pass an order of
assessment or reassessment and determine the tax payable by him on the
basis of such assessment or reassessment, and the provisions of section
275 shall not apply in respect of such order;
( d) the assets seized under section 247 or requisitioned under section 248
shall be dealt with as per section 250.
(2) The provisions of section 270(1) shall not apply to the return furnished under
this section.
(3) The Assessing Officer, before issuance of notice under sub-section (1)(a), shall
take prior approval of the Additional Commissioner or the Additional Director or
the Joint Commissioner or the Joint Director.