India's ITAT Hyderabad overturns tax additions in PVV Infra and Patwari Bakers cases

The Income Tax Appellate Tribunal (ITAT) in Hyderabad set aside a Rs 2.93 crore income‑tax addition on PVV Infra Limited. The tribunal found that the assessee had mistakenly credited a Rs 2.93 crore debit note to its sales account instead of the purchase account and, after considering additional evidence, ordered the tax department to re‑examine the case and delete the addition.

In a separate ruling, the ITAT held that a taxpayer, Dilip Kumar Gupta of Patwari Bakers Private Limited, could claim the indexed cost of improvement when computing capital gains under Section 50C of the Income Tax Act. The tribunal rejected the assessing officer’s disallowance of the Rs 11.39 lakh improvement cost, directing limited verification and remanding the matter for recomputation of long‑term capital gains.