Incriminating material is required for section 153A additions in completed assessments; absent search material, additions fail.

For a completed or unabated assessment, additions under section 153A cannot be sustained unless incriminating material is found during search. Where the assessment was already concluded on the date of search and the additions were made only from return particulars or material already available in assessment proceedings, the expansion of assessed income under section 153A was treated as impermissible. The additions were deleted for want of search-based incriminating material, while the Revenue's liberty to proceed under sections 147 and 148 in appropriate cases was noted.

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

Analysis: The assessment year in question was a completed assessment on the date of search, and the additions were made on the basis of return particulars and material furnished during assessment proceedings, without reference to any material seized in search. The governing principle applied was that, for completed or unabated assessments, additions under section 153A must rest on incriminating material found during search; if none is found, the assessment cannot be enlarged on the basis of other material already available. Liberty to proceed under sections 147 and 148 was recognized for the Revenue in appropriate cases.

Conclusion: The additions under section 153A were unsustainable in the absence of incriminating material and were deleted. The issue was decided in favour of the assessee.

Final Conclusion: The appeal succeeded on the legal ground, the impugned additions were set aside, and the remaining grounds were rendered academic.

Ratio Decidendi: In respect of a completed or unabated assessment under section 153A, no addition can be made unless incriminating material is found during search.

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