Unabated section 153A assessment requires incriminating search material to sustain an addition.

In an unabated assessment under section 153A, an addition cannot be sustained unless it is based on incriminating material found during search. Here, the record disclosed no such material for the impugned addition, so the settled position on section 153A search assessments was not satisfied and the addition failed in favour of the assessee.

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

Analysis: The addition was made in search assessment proceedings following a search under section 132 of the Income-tax Act, 1961. The assessment year was unabated, and the record disclosed no incriminating material on the basis of which the impugned addition was made. In such circumstances, the settled legal position governing section 153A assessments required the addition to rest on incriminating material found during search, which was not present in the case.

Conclusion: The addition under section 153A could not be sustained and the issue was decided in favour of the assessee.

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