Vashisth Builders and Engineers Pvt. Ltd. vs. DCIT, Circle-26(1), New Delhi

Parties Involved

Facts Summary

Vashisth Builders and Engineers Pvt. Ltd. (the appellant) filed an appeal against the order of the Commissioner of Income Tax (Appeals) for the Assessment Year 2012-13. The appellant contested the additions made by the Deputy Commissioner of Income Tax under section 143(3) of the Income Tax Act, 1961. The key issues were the disallowance of notional interest on interest-free loans, the addition of Rs. 7,20,000/- by treating share capital received as unexplained cash credit, and the disallowance of share capital allotments. The appellant submitted various documents to substantiate the identity and creditworthiness of the shareholders and the genuineness of the transactions.…

Legal Issues

• 1. Disallowance of notional interest on interest-free loans.
• 2. Addition of Rs. 7,20,000/- by treating share capital received as unexplained cash credit.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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