Allowing the appeal the Tribunal held that the original assessment under section 143(3) of the Act, stood completed on the date of the search and no assessment proceedings were pending as regards the assessment year 2007-08. No incriminating material was recovered during the course of search concerning the addition made on account of long-term capital gains. It is well-settled law that seized material must have some nexus or relevance to the additions sought to be made and must be relevant for the belief formed regarding income having escaped assessment. Therefore, the invocation of section 153A of the Act for assessment year 2007-08 was without any legal basis as there was no incriminating material qua the assessment order under appeal. The Assessing Officer was not justified in making the addition on account of long-term capital gains. (AY.2007-08)