Section 153A additions require incriminating material for the relevant year; absent that, a Section 68 addition fails.

In Section 153A proceedings, additions for a completed assessment year cannot be sustained in the absence of incriminating material found during search relating to that year. The assessee had disclosed the amount as sale consideration for shares, the related capital gain was taxed in the succeeding year, and the Revenue had accepted that assessment. As no incriminating material emerged for the relevant assessment year, the Section 68 addition was held unsustainable and the Revenue's challenge failed.

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Issues: Whether the addition made under Section 68 could be sustained in proceedings under Section 153A in the absence of incriminating material for the relevant assessment year.

Analysis: The amount in question had been shown by the assessee as sale consideration for shares, the resultant capital gain had been offered to tax in the succeeding assessment year, and the Revenue had accepted that assessment. No incriminating material was found in the search relating to the relevant assessment year. In such circumstances, additions in Section 153A proceedings could not be made without incriminating material relating to the assessment year concerned.

Conclusion: The addition under Section 68 was not sustainable, and the Revenue's challenge failed.

Ratio Decidendi: In completed assessments under Section 153A, additions can be made only on the basis of incriminating material found in the search for the relevant assessment year.

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