UTTAR GUJARAT VIJ COMPANY LTD.,,MEHSANA vs. THE PR. CIT-1, VADODARA

ITA 220/AHD/2022Status: DisposedITAT Ahmedabad12 June 2026AY 2017-186 pages
AI SummaryDismissed

What were the facts?

The assessee filed its return of income, and the assessment was completed under scrutiny. The Principal Commissioner of Income Tax (PCIT) invoked Section 263, holding the assessment order to be erroneous and prejudicial to revenue due to the Assessing Officer's failure to verify certain issues. The PCIT set aside the assessment order for fresh adjudication.

What did the Tribunal hold?

The Tribunal upheld the PCIT's order, finding that the Assessing Officer had not adequately verified the provision for bad and doubtful debts and the loss on sale of assets. The Tribunal also directed the Assessing Officer to re-compute brought forward unabsorbed losses and depreciation after giving effect to appellate orders.

What were the issues?

Whether the PCIT correctly invoked Section 263 by finding the assessment order erroneous and prejudicial to revenue due to lack of verification by the AO on specific claims. Whether the AO properly examined the provision for bad debts and loss on sale of assets.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 115JB,Section 36

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI TR SENTHIL KUMAR & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Mehul K Patel, Advocate
For Respondent: Shri Kiran Unavekar, CIT-DR
Hearing: 10.06.2026Pronounced: 12.06.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Principal Commissioner of Income Tax, Vadodara – 1 [hereinafter referred to as “PCIT”] dated 31.03.2022 for the Assessment Year (A.Y.) 2017-18, passed in his revisional juri iction u/s 263 of the Income Tax Act [hereinafter referred as “The Act”].

2.

The brief facts of the case are that the assessee had filed its return of income for A.Y. 2017-18 on 13.10.2017 declaring total loss of Rs.55,06,12,144/- under normal provisions and book profit of Rs.97,42,25,932/- u/s. 115JB of the Act. The case was selected for Uttar Gujarat Vij Company Ltd Vs Pr. CIT, AY- 2017-18 2

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