Completed assessment cannot be disturbed in search proceedings without incriminating material supporting the addition.

In search-related proceedings under section 153C, a completed assessment year cannot be disturbed unless the addition is founded on incriminating material found during the search. Here, the original assessment under section 143(3) had already attained finality, and the proposed addition was based only on a fresh reappraisal of expenses already examined in the regular assessment. As no incriminating material was shown to support the addition, the completed assessment could not be reopened on that basis, and the Revenue's challenge failed.

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Issues: Whether, in proceedings under section 153C, the Assessing Officer could make an addition for a completed assessment year in the absence of incriminating material found during search.

Analysis: The original assessment under section 143(3) had already attained finality before the search-linked proceedings. The addition made in the section 153C assessment was not shown to arise from any incriminating material found during the search, but from a fresh reappraisal of expenses already examined in the regular assessment. In such a situation, the settled position applied by the Court was that completed assessments cannot be disturbed under search provisions unless supported by incriminating material unearthed during the search.

Conclusion: The addition could not be sustained and the assessee succeeded on this issue.

Final Conclusion: The search assessment was not permitted to reopen a concluded assessment year on the basis of a mere re-examination of the record, and the Revenue's challenge failed.

Ratio Decidendi: In respect of a completed assessment year, an addition in search-related proceedings can be made only if it is founded on incriminating material found during the search.

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