Incriminating material required for section 68 additions in unabated section 153A assessments; additions deleted absent seized evidence.

For unabated assessment years covered by section 153A after a search under section 132, additions under section 68 cannot be sustained unless they are based on seized or incriminating material. On the facts discussed, no such material was found to support the unexplained cash credit additions, so the additions were deleted.

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Issues: Whether additions made under section 68 of the Income-tax Act, 1961 in respect of unabated assessment years in proceedings under section 153A could be sustained without reliance on seized or incriminating material.

Analysis: The assessment years were held to be unabated after search action under section 132 and initiation of section 153A proceedings. In such cases, the addition must rest on seized or incriminating material. On scrutiny of the assessment discussion, no material of that kind was found to support the impugned unexplained cash credit additions.

Conclusion: The additions under section 68 were deleted and the assessee succeeded.

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