A search under section 132 was conducted in the assessee’s group cases. The Assessing Officer made disallowance of expenditure towards special salary and commission charges merely on the basis of the sworn statement of one of the directors. The Tribunal held that the difference between physical stock and book stock by itself could not constitute incriminating material, as such details could be called for during the regular assessment proceedings. Further, the addition was based solely on the sworn statement without any corroborative documentary evidence found during the search. In the absence of incriminating material, the assessment framed under section 143(3) read with section 153A was liable to be quashed. On merits also, the deletion of the disallowance by the Commissioner (Appeals) was upheld. (AY 2010-11 to 2012-13).