Incriminating material is required for section 68 additions in search assessments; absent it, the additions cannot stand.

In search-related assessments under section 153C read with section 143(3) of the Income-tax Act, additions under section 68 cannot be sustained unless supported by incriminating material found during the search. The Bombay High Court treated the issue as covered by binding precedent and applied that principle to hold that, where no such material exists, the additions lack legal basis and cannot stand. The Revenue's challenge therefore failed.

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Issues: Whether additions made under section 68 in assessments under section 153C read with section 143(3) of the Income-tax Act, 1961 could be sustained in the absence of incriminating material found during search.

Analysis: The question was covered by binding precedent of the Court holding that, in search-related assessments, additions cannot be sustained when no incriminating material is found to justify them.

Conclusion: The additions were unsustainable in law and the Revenue's challenge failed.

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