Incriminating material is required to disturb a completed assessment in section 153A search proceedings.

In a search assessment under section 153A read with section 143(3), additions to a completed assessment cannot be sustained unless incriminating material is found during the search. Here, the capital gains transaction was already recorded in the books, and the post-search inquiry and statement recorded during search did not disclose any incriminating material to justify disturbing the completed assessment. The settled principle therefore applied against the addition, and the Revenue's challenge failed.

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Issues: Whether, in an assessment under section 153A read with section 143(3), an addition on account of gain from sale of investments could be sustained in the absence of incriminating material found during search.

Analysis: The addition was made on the basis of post-search inquiry and a statement recorded during search, while the relevant capital gains transactions were already reflected in the books of account. The material on record did not show any incriminating material unearthed during the search to disturb the completed assessment. In such circumstances, the settled principle applied that, for completed assessments, additions under section 153A cannot be made without incriminating material.

Conclusion: The addition was unsustainable and the Revenue's challenge failed.

Ratio Decidendi: In a search assessment under section 153A, completed assessments cannot be disturbed by making additions unless incriminating material is found during search.

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