A search and seizure operation was conducted at the premises of assessee. Consequently, a notice under section 153A was issued to assessee. In response, assessee requested to treat original return as return filed in response to notice. Assessing Officer disallowed deduction claimed under section 80IAB and added back same to income declared in return. Assessee claimed that no incriminating material was found during search and proceedings under section 153A were bad in law. It was noted that subsequent to search, a statement was recorded of valuer which formed basis for disallowance of deduction claimed under section 80-IAB. CIT(A) deleted the addition. Tribunal held that since no assessment was pending on the date of the search and no incriminating material was found during the search, fresh material/information received after the date of the search would not be sufficient to reopen the assessment under section 153A. On appeal the High Court held that where no assessment proceedings are pending on the date of initiation of search, the Assessing Officer may consider only the incriminating material found during the search and is precluded from considering any other material derived from any other source. Appeal of Revenue is dismissed.(AY. 2011-12)