VIVESSA INDUSTRIES PRIVATE LIMITED,HYDERABAD vs. ITO., WARD-2(1), HYDERABAD

ITA 611/HYD/2025Status: DisposedITAT Hyderabad16 September 2026AY 2020-2110 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Assessing Officer was not required to examine the loss on sale of assets as it fell outside the scope of limited scrutiny. Therefore, the PCIT's order under Section 263 was not sustainable.

What were the facts?

The assessee claimed a loss on sale of assets, which the PCIT believed was capital in nature and not allowable. The PCIT invoked Section 263, stating the Assessing Officer failed to examine this issue during limited scrutiny. The limited scrutiny was for verifying high liabilities vs. low income and agricultural income.

What were the issues?

Whether the PCIT can invoke Section 263 when the Assessing Officer fails to examine an issue outside the scope of limited scrutiny. Whether the loss on sale of assets was within the scope of limited scrutiny concerning liabilities or agricultural income.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(2),Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘A‘ Bench, Hyderabad

Before: Shri Ravish SoodShri Madhusudan Sawdia

Hearing: 17/08/2026

Per Madhusudan Sawdia, A.M.:

This appeal is filed by M/s. Vivessa Industries Private Limited (“the assessee”), feeling aggrieved by the order passed by the Learned Principal Commissioner of Income Tax- 2, Hyderabad (“Ld. PCIT”) dated 20.02.2025 for the A.Y. 2020-

21.2.

The assessee has raised the following grounds of appeal:

3.

The brief facts of the case are that the assessee is a private limited company which had filed its return of income for the assessment year 2020-21 on 11.02.2021, declaring total

Income of Rs. 29,72,220/- and a

The order continues below.

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