Panchnama and limitation in block assessment: only a genuine concluding search record extends time under section 158BE.

Limitation for block assessment under section 158BE(1)(b) runs from the end of the month in which the last authorisation is executed, and in a search case execution is linked to the conclusion of an actual, continuous search recorded in the last panchnama. A later document will not extend limitation if it merely records release of seals, return of keys, or removal of a restraint order under section 132(3) without any fresh search, seizure, or discovery. Applying that principle, the search was treated as concluded on 17.11.2000, so the limitation period expired on 30.11.2002 and the assessment order dated 30.01.2003 was time-barred.

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Issues: Whether the block assessment was barred by limitation because the search concluded on 17.11.2000 and the later panchnama dated 03.01.2001 was only a release order, and whether the panchnama of 03.01.2001 could be treated as the last panchnama for the purpose of section 158BE(1)(b) and Explanation 2(a).

Analysis: The limitation under section 158BE(1)(b) runs from the end of the month in which the last authorisation is executed, and in a search case execution is deemed to occur on the conclusion of search as recorded in the last panchnama. A panchnama qualifies for this purpose only if it records the conclusion of an actual search. The restraint order under section 132(3) did not amount to seizure, and the record showed that the jewellery had already been found, inventorised and valued on 17.11.2000. On 03.01.2001 no fresh search was conducted, nothing was seized, and nothing new was found; the seals were merely removed and the keys returned. The authorities and precedents relied upon establish that a search must ordinarily be continuous, any hiatus must be explained, and a mere recital that the search was temporarily suspended does not by itself extend limitation. The later panchnama was therefore not a panchnama evidencing conclusion of search within Explanation 2(a).

Conclusion: The search was concluded on 17.11.2000, the limitation period expired on 30.11.2002, and the assessment order dated 30.01.2003 was time-barred. The appeal by the Revenue failed.

Ratio Decidendi: For section 158BE, only a panchnama that genuinely records the conclusion of an actual and continuing search can be treated as the last panchnama; a release order or formal removal of seals without any fresh search does not extend limitation.

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