Section 192 is the substantive equivalent of 1961 s. 113 -- the SPECIAL-RATE provision for SEARCH-AND-SEIZURE block-assessment cases. Where AO has determined undisclosed income for the BLOCK PERIOD under s. 294 (block assessment for…
192
ITA 2025 · Section 192
Section 192 — - TAX ON BLOCK-PERIOD UNDISCLOSED INCOME
Section 192 is the substantive equivalent of 1961 s. 113 -- the SPECIAL-RATE provision for SEARCH-AND-SEIZURE block-assessment cases. Where AO has determined undisclosed income for the BLOCK PERIOD under s. 294 (block assessment for search cases / equivalent of 1961 s. 158BC / 158BFA), tax is charged at FLAT 60% rate -- no slab-rate-relief, no Chapter VIII deductions, no rebates. The 60% rate is harsher than even highest slab (30%) plus surcharge -- reflecting policy intent to penalise concealment discovered through search. Practitioner: Block-period determination follows search; appeal to ITAT direct; high-value litigation typical.
STATUTORY ARCHITECTURE: Block period (typically 6 / 10 / 6+1 years preceding search) per s. 294 covers undisclosed income found in search seizure operations (s. 132 of 1961 / equivalent in 2025). Section 192 applies FLAT 60% rate plus applicable surcharge plus 4% cess. NO Chapter VIII deductions, NO Chapter IX rebates, NO basic exemption. Penalty under separate provisions (s. 271AAB / 271AAC equivalent in 2025 Act / s. 270A) typically also applied (60-100% penalty). Effective rate ~75-90% on undisclosed income. CASE LAW: CIT v. Vatika Township (SC, 2014, 367 ITR 466) -- 60% rate prospective; CIT v. Manoharlal Sharma -- block-assessment validity. PRACTITIONER: search-led case strategy: (i) immediate engagement of senior counsel; (ii) compute exposure; (iii) ITAT appeal route.
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