Income Tax Law | Updated 26 October 2026

Section 158BG: Authority Competent to Make Block Assessment

Section 158BG of the Income-tax Act, 1961 specifies the rank of the Assessing Officer competent to pass an order assessing undisclosed income for a block period. It also requires approval by a designated senior income-tax authority before the assessment order is passed.

Meaning of block assessment

A block assessment is a special assessment of undisclosed income arising from a search under section 132 or requisition under section 132A. Chapter XIV-B contains rules for the block period, computation, procedure, limitation and approvals. The applicable version of the law depends on the search or requisition date.

Who can pass a block assessment order under Section 158BG?

For the block-assessment framework reintroduced for searches and requisitions on or after 1 September 2024, the order must be passed by an Assessing Officer not below the rank of Deputy Commissioner, Assistant Commissioner, Deputy Director or Assistant Director, as applicable.

The order requires previous approval of the Additional Commissioner, Additional Director, Joint Commissioner or Joint Director, as applicable. Previous approval means approval obtained before the order is made, not a subsequent ratification. See the official text of section 158BG.

Approval of notice and approval of assessment order

Under section 158BC, the Assessing Officer must also obtain the prescribed prior approval before issuing the block assessment notice under section 158BC(1)(a). This is a separate procedural requirement from the approval of the final order under section 158BG.

Historical provisions for earlier searches

The earlier form of section 158BG prescribed different approving authorities for historical block assessments. For searches or requisitions after 30 June 1995 but before 1 January 1997, the approving authority was the Principal Commissioner or Commissioner, or Principal Director or Director, as applicable. For searches or requisitions on or after 1 January 1997 under that earlier regime, the approval was from the Joint Commissioner or Joint Director, as applicable.

These historical provisions should not be confused with the reintroduced Chapter XIV-B regime effective for searches from 1 September 2024. The Finance Act, 2025 also amended the framework, including omission of section 158BI with retrospective effect from 1 September 2024.

Related legal provisions and definitions

Practical points to verify

  1. Confirm the date of search or requisition and the governing statutory version.
  2. Check the jurisdiction and minimum rank of the Assessing Officer.
  3. Verify the required prior approval for issuing the notice under section 158BC.
  4. Verify prior approval for the final assessment order under section 158BG.
  5. Review compliance with the time limit under section 158BE and other applicable safeguards.

Frequently asked questions

Can an officer below Assistant Commissioner rank pass the block assessment order?

No. Section 158BG specifies the minimum eligible rank of the Assessing Officer.

Is prior approval mandatory?

Yes, where section 158BG applies, approval of the specified senior authority must precede the final assessment order.

Does section 158BG determine tax or penalties?

No. It governs competence and approval. Other sections deal with computation, procedure, interest and penalties.

Official statutory sources

Income Tax Department - Section 158BG

Income-tax Act, 1961 as amended by Finance Act, 2025

Income Tax Department - Block assessment guidance

General legal information; check the law applicable to the relevant search date and individual circumstances.