Search under section 132 was initiated at the assessee’s premises on 8-12-1999 and, as it could not be completed on the same day, prohibitory orders under section 132(3) were issued and the search was continued on 21-1-2000 and finally concluded on 2-3-2000 when the prohibitory order was lifted. The Tribunal held that limitation under section 158BE(1)(b) had to be reckoned from the date of initiation of search, i.e., 8-12-1999, and therefore the block assessment order dated 28-3-2002 passed under section 143(3) read with section 158BC was barred by limitation. On appeal by the Revenue, the High Court held that there is a clear distinction between “deemed seizure” contemplated under the second proviso to section 132(1) and a restraint/prohibitory order under section 132(3), and an order under section 132(3) cannot be equated with seizure. Where the search remains incomplete and is validly continued on subsequent dates, limitation under section 158BE(1)(b) is to be computed from the end of the month in which the search is actually concluded and not from the date of initial search. Since the search concluded only on 2-3-2000, the block assessment order dated 28-3-2002 was within limitation. As the Tribunal had not adjudicated the issues on merits, the matter was remanded to the Tribunal for decision on merits along with the assessee’s cross-objection. (AY. 1990-91 to 1999-2000 & part of AY. 2000-01)