A search and seizure action was carried out in case of the assessee’s group on 25-4-2012. The original return of income was filed u/s 139 on 8-2-2008 and the last day of issuing notice section 143(2) had expired on 30-9-2008 before the date of search and the assessment proceedings therefore were not pending as on 25-4-2012 i.e. the date of search. The Tribunal held that in case of completed assessment and not abated due to initiation of search u/s 132 or making of requisition u/s 132A, the AO has to reassess the total income of the assessee and therefore, the assessment already completed can be tinkered with or distrusted where any incriminating material is found and seized during the course of search or requisition as case may be indicating undisclosed income of the assessee. Tribunal noted that the Assessing Officer had reassessed the income of the assessee by making the disallowance u/s 40(A)(3) without making any reference to any incriminating material found during the course of search. There was no finding of the Assessing officer or any other material brought on record that the registered sale deeds were found and seized during the course of search or the transactions so represented by such sale deeds were not recorded in the books of accounts as on the date of search. The Tribunal held that once these transactions were duly recorded in the books of accounts and basis the same, the return of income was furnished before the date of search, the said transactions were duly disclosed to the department and thus, doesn’t represent any undisclosed transactions so as to constitute incriminating material found during the course of search in case of the assessee. Therefore, the disallowance/addition made by the AO and reassessment completed u/s 153A was undisputedly not based on any incriminating material found or seized during the course of search and seizure action u/s 132 of the Act. The addition was thus deleted. (IT ANo. 980/JP/ 2018; dt . 27-10-2020) (AY. 2007-08)