Incriminating material limits revision of completed search assessments where the Assessing Officer has adopted a legally correct view.

For unabated assessment years covered by a search, a completed assessment may be disturbed only on incriminating material relating to that year that reveals undisclosed income. The notes state that pending assessments abate and permit assessment of total income, but completed assessments remain protected absent such material. Where the Assessing Officer adopts this legally correct approach, revisionary jurisdiction cannot be invoked merely because the Principal Commissioner holds a different view. Accordingly, revision of the completed assessment is not available without incriminating material establishing undisclosed income.

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Issues: Whether the Principal Commissioner could invoke revisionary jurisdiction over an assessment completed pursuant to search for an unabated assessment year when no addition, other than one based on incriminating material, was made by the Assessing Officer.

Analysis: In search cases, pending assessment or reassessment proceedings abate, permitting assessment of total income for the relevant block period. A completed or unabated assessment may be disturbed only where incriminating material relating to that assessment year reveals undisclosed income. As the Assessing Officer had adopted the legally correct view, revision could not be initiated merely on a different view of the Principal Commissioner.

Conclusion: The revisionary power could not be exercised against the completed assessment in the absence of incriminating material establishing undisclosed income; the issue was decided in favour of the assessee.

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