Assessment in case of person not being searched can be carried out u/s 158BD only by issuance of proper notice:

A Search action was carried out at the premises of a Company. Assessee’s premises were also searched in the capacity of “Employee” of the said company (and not in his “Individual” capacity) and notice was issued to the assessee u/s 158BC. Hon’ble ITAT annulled the assessment so framed in the assessee’s case after noting that since the assessee was not the person searched, the said proceedings could have carried out u/s 158BD only by issuance of proper notice and this was not done in the given case. On Revenue’s appeal, the Hon’ble High Court upheld the view taken by ITAT.

[NILESH S. RAITHATHA - TAX APPEAL NO.861 & 862 of 2011 - GHC]