Section 153A limits additions for unabated years to incriminating search material, keeping completed assessments intact.

In section 153A proceedings involving unabated years, additions on completed issues cannot be sustained unless supported by incriminating material found during search. The assessee's assessments had already been completed under section 143(3) and were not pending on the search date, and the disputed apportionment of common expenses was not based on any search material. The tribunal therefore upheld deletion of the additions, and the Revenue's challenge failed.

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Issues: Whether additions made in assessments under section 153A could be sustained for apportionment of common expenses in the absence of incriminating material when the original assessments had not abated.

Analysis: The assessee's original assessments for the relevant years had already been completed under section 143(3) and were not pending on the date of search. The impugned additions were not founded on any material found during the search. In such a situation, the settled principle governing section 153A proceedings is that, for unabated years, additions cannot be made on completed issues unless supported by incriminating material. The earlier appellate and tribunal decisions on the same expense allocation issue also supported the assessee's method of apportionment.

Conclusion: The additions were rightly deleted and the Revenue's challenge failed.

Final Conclusion: The appeals were dismissed and the assessee's relief on the disputed additions was sustained.

Ratio Decidendi: In section 153A proceedings relating to unabated assessments, additions on completed issues are impermissible unless they are supported by incriminating material found during search.

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