Eager Corporation Vs DCIT-Cent-CIR 8(3) (ITAT Mumbai)
Summary: The Mumbai ITAT allowed Eager Corporation’s appeals for AYs 2010-11 to 2013-14 and directed deletion of additions made under sections 40A(3), 40(a)(ia), 37(1), 68 and 69A in assessments framed under section 144 read with section 153A. A search under section 132 was conducted in the Gurnani Group on 04.02.2016. The Assessing Officer had also directed a special audit under section 142(2A), relied on books, financial records, special-audit findings, investigation findings and statements, and made various additions, which were affirmed by the CIT(A). Before the Tribunal, the assessee contended that no incriminating material relatable to the additions had been found during search. The Assessing Officer subsequently furnished a report dated 21.10.2025 pursuant to the Tribunal’s direction, but did not identify any seized document or incriminating material supporting the additions. Relying on PCIT Vs. Abhisar Buildwell P. Ltd. (Supreme Court), (2023) 149 taxmann.com 399 (SC), the Tribunal held that the jurisdictional condition for additions under section 153A in respect of unabated assessment years was not satisfied. The additions for all four assessment years were therefore directed to be deleted, while adjudication on merits was treated as academic. The order was pronounced on 12.02.2026.
Search Assessment and Additions Made by the Assessing Officer
The appeals arose from separate but identical appellate orders dated 27.01.2023 passed by the CIT(A)-50, Mumbai, following assessments under section 144 read with section 153A for AYs 2010-11, 2011-12, 2012-13 and 2013-14. Since the assessments arose from the common search action conducted under section 132 in the case of the Gurnani Group on 04.02.2016, the appeals were heard together, with AY 2011-12 treated as the lead year.
