Incriminating search material is required for section 153C additions; absent it, the additions cannot be sustained.

Additions under section 153C of the Income-tax Act cannot be sustained where no incriminating material is found during a search under section 132 for the relevant assessment years, and the Assessing Officer relies on no seized material or other material justifying the additions. The Tribunal accepted the factual position that no such material existed, and the settled law applied in Kabul Chawla, as affirmed in Abhisar Buildwell, supports the view that section 153C additions must be linked to incriminating search material. On that basis, the additions were held to be beyond the scope of section 153C and were not sustained.

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Issues: Whether additions made under section 153C of the Income-tax Act, 1961 could be sustained in the absence of incriminating material found during the search under section 132 of the Income-tax Act, 1961 for the relevant assessment years.

Analysis: The Tribunal had found, on facts, that no incriminating material had been recovered in relation to the relevant assessment years and that the Assessing Officer had not referred to any seized material or other material justifying the additions. The accepted factual position was consistent with the settled law that additions in proceedings under section 153C cannot rest on material unconnected with incriminating material found during search. The decision of the coordinate bench in Kabul Chawla, as affirmed by the Supreme Court in Abhisar Buildwell, supported that view.

Conclusion: The additions were beyond the scope of section 153C and could not be sustained; the appeals of the Revenue failed.

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