Block assessment under Section 158BC and limitation under Section 158BE(1)(a) barred the assessment as time-expired.

Where the assessee itself was searched and incriminating material was found in that search, the block assessment had to proceed under Section 158BC, not Section 158BD. Section 158BD applied only when undisclosed income of a person other than the searched person was assessed on material found in another person's search. Limitation for a Section 158BC assessment was governed by Section 158BE(1)(a), and later file noting could not change the statutory nature of the proceeding or extend time. As the assessment was completed after the prescribed period, it was barred by limitation.

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Issues: Whether the block assessment in the assessee's case was correctly assessed under Section 158BC rather than Section 158BD, and whether the assessment was time-barred under the applicable limitation provision.

Analysis: The search was conducted in the assessee's premises on the same date as the search in another person's case, and incriminating materials were seized in that search. On those facts, the case fell within Section 158BC, while Section 158BD applied only where undisclosed income of a person other than the searched person was brought to assessment on the basis of material found in the search of that other person. The limitation for a case falling under Section 158BC was governed by Section 158BE(1)(a), and the subsequent file noting could not alter the statutory character of the proceedings or extend the limitation period. Since the assessment was completed after the prescribed period had expired, it was barred by limitation.

Conclusion: The assessment was governed by Section 158BC, not Section 158BD, and it was time-barred.

Ratio Decidendi: Where the assessee itself is searched and incriminating material is found in that search, the block assessment must proceed under Section 158BC, and limitation is computed under Section 158BE(1)(a) from the end of the month in which the search authorisation was executed.

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