How to use Switch in SQL Server

The CASE is just a "switch" to return a value - not to execute a whole code block.

You need to change your code to something like this:

SELECT 
   @selectoneCount = CASE @Temp
                         WHEN 1 THEN @selectoneCount + 1
                         WHEN 2 THEN @selectoneCount + 1
                     END

If @temp is set to none of those values (1 or 2), then you'll get back a NULL

This is a select statement, so each branch of the case must return something. If you want to perform actions, just use an if.