Incriminating material is required to disturb a completed assessment under section 153A; additions were deleted.

For an unabated assessment year, additions under section 153A cannot be sustained unless search yields incriminating material showing undisclosed income or assets. Where the materials relied upon are already reflected in the regular books and returned figures, and no seized document or other incriminating material is found, completed assessments cannot be disturbed under section 153A; the additions, including deemed dividend and capital gains adjustments, were deleted as the jurisdictional foundation failed.

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Issues: Whether additions under section 153A could be sustained for an unabated assessment year in the absence of incriminating material found during search.

Analysis: The assessment year was an unabated one and the materials relied upon by the Assessing Officer were already reflected in the regular books of account and returned figures. No seized document or other incriminating material was shown to have been found during search to justify the additions. In such circumstances, the governing principle applied was that completed assessments cannot be disturbed under section 153A unless incriminating material is unearthed during the search; if no such material exists, the proper course lies in reassessment, subject to statutory conditions. The other additions, including the deemed dividend and capital gains adjustments, were treated as academic once the jurisdictional foundation failed.

Conclusion: The additions were not sustainable and were deleted.

Final Conclusion: The appeal succeeded because the search assessment lacked the requisite incriminating material for disturbing a completed assessment.

Ratio Decidendi: In respect of an unabated or completed assessment, additions under section 153A cannot be made in the absence of incriminating material found during search.

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