Incriminating material is required for section 153A additions in unabated assessments; share capital additions were deleted.

In an unabated assessment under section 153A, additions under section 68 cannot be sustained unless supported by incriminating material found during the search. Where the assessment year had already attained finality, and the share capital and share premium addition was not linked to any seized document, statement, or other search evidence, the Revenue could not justify the adjustment. Because the issue had already been examined in the original assessment and no incriminating material was shown, the addition was deleted as unsustainable in law.

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Issues: Whether, in respect of an unabated assessment under section 153A of the Income-tax Act, 1961, the addition of share capital and share premium under section 68 could be sustained in the absence of incriminating material found during search.

Analysis: The assessment year in question had already attained finality before the search, so the assessment was unabated. In such a case, additions in proceedings under section 153A cannot be made unless they are supported by incriminating material discovered during the search. The addition relating to share capital and share premium was not based on any seized document, statement, or other incriminating evidence. The issue had already been examined in the original assessment, and the Revenue did not demonstrate any search material linking the impugned addition to the assessment year concerned.

Conclusion: The addition under section 68 was not sustainable in the section 153A assessment for want of incriminating material, and the deletion of the addition was in law.

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