Completed search assessment cannot be revised without incriminating material supporting the proposed additions.

Section 263 revision was held unsustainable where the assessment had been completed and was unabated on the date of search, and the issues sought to be disturbed were not supported by incriminating material. Materials relied on by the revisional authority were already part of the regular books or otherwise non-incriminating, and the matters had been examined in the earlier assessment proceedings. In the absence of fresh incriminating material, the completed section 153A assessment could not be treated as erroneous and prejudicial to the interests of the revenue. The revisional order was quashed and the assessee's challenge succeeded.

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Issues: Whether revision under section 263 could be invoked in respect of a completed search assessment framed under section 153A for issues not supported by incriminating material, including alleged deemed dividend and depreciation on motor lorries.

Analysis: The original assessment for the relevant year had already been completed and was unabated on the date of search. The materials relied upon by the revisional authority were found to be part of regular books or otherwise non-incriminating, and no fresh incriminating material was shown to justify disturbance of the concluded assessment. The earlier assessment proceedings had already examined the relevant matters, and the revisional authority failed to show that the assessment order was both erroneous and prejudicial to the interests of the revenue in a manner permitting revision in the absence of incriminating material.

Conclusion: Revision under section 263 was not sustainable and the assessee succeeded on the jurisdictional challenge.

Final Conclusion: The revisional order was quashed and the assessee's appeal was allowed.

Ratio Decidendi: A completed assessment under section 153A cannot be revised under section 263 on issues not arising from incriminating material found during search, and non-incriminating material already forming part of regular records cannot render the assessment order erroneous and prejudicial to the interests of the revenue.

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