Section 297
Section 297: certain interests and penalties not to be levied or imposed
Section 297 is a short but important protective provision within the block-assessment scheme: it blocks the Assessing Officer from levying interest under sections 423, 424 or 425, or imposing penalty under section 439, on the undisclosed income that is assessed or reassessed for the block period under Sections 292 to 300.
What the section says
Interest under section 423, 424 or 425, or penalty under section 439, shall not be levied or imposed upon the assessee for the undisclosed income assessed or reassessed for the block period.
Frequently asked questions
Does Section 297 mean no interest or penalty at all applies to block-period income?
Section 297 only blocks interest under sections 423, 424 and 425, and penalty under section 439, specifically in respect of undisclosed income assessed or reassessed for the block period. It does not, on its own text, address other interest or penalty provisions elsewhere in the Act.
Which income does this protection apply to?
Only the undisclosed income of the assessee that is assessed or reassessed for the block period under the special search-assessment procedure in sections 292 to 300.
Related sections
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Talk to our team about interest and penalty on a block assessmentLast updated 9 September 2026