A search under section 132 was conducted upon premises of assessee company on 7-11-2000 based on authorisation dated 4-11-2000.  Said authorisation was executed on 8-11-2000 when search was completed and panchnama was made-On 10-11-2000 a search was conducted on basis of fresh authorisation dated 10-11-2000. On 4-12-2000, investigation team again conducted search upon assessee under same old authorisation dated 10-11-2000 and passed prohibitory order under section 132(3) and items were inventorised.  On 7-11-2001, i.e. almost after a period close to one year, investigation team again visited premises under same old authorisation dated 10-11-2000 for conducting search and prohibitory order passed on 4-12-2000 was converted into deemed seizure under section 132(1)(iii). There was nothing searched on this day except passing of conversion order from section 132(3) to 132(1)(iii). A block assessment order was passed on 28-11-2003 Assessee submitted that revenue could not conduct search after almost one year on basis of an old authorisation dated 10-11-2000 and draw a panchnama concluding search. It contended that limitation under section 158BE should begin from date of last drawn panchnama i.e. 8-11-2000, and, thus, impugned assessment order passed on 28-11-2003 was barred by limitation.  According to revenue, limitation would start from 7-11-2001 when order of deemed seizure was passed under section 132(iii) by virtue of Explanation 2 read with section 158BE and, hence, block assessment framed vide order dated 28-11-2003 was within limitation period. Tribunal held that the department could not keep search action in abeyance for a long period of almost one year from date of last authorisation more so when after a period of one year nothing was searched but only prohibitory order passed one year back was converted into deemed seizure, therefore, panchnama dated 7-11-2001 drawn based on authorisation dated 10-11-2000 was bad in law and, therefore, limitation could not be counted from 7-11-2001 but it was ought to be counted from 10-11-2000 or at most from 4-12-2000. Accordingly the  assessment order dated 28-11-2003 was barred by limitation.  (BP 1-4-1990 to 7-11-2000)