Vidur Chharia Vs. DCIT/ACIT, Central Circle, Ghaziabad

Parties Involved

Facts Summary

The assessee, Vidur Chharia, filed his return of income for AY 2017-18 declaring a total income of ₹21,34,900/-. A search and seizure action was conducted on 18.10.2019 in the case of Alankit Group, during which various incriminating materials belonging to the assessee were found and seized. Subsequently, the case of the assessee was centralized and proceedings under section 153C of the Act were initiated. The materials found and seized in the search of Alankit Group were handed over to the Assessing Officer of the assessee during May 2022 to August 2022. Based on these materials, the Assessing Officer recorded a combined satisfaction note for AYs 2014-15 to 2020-21 on 03.08.2023 for initiating proceedings under section 153C of the Act. The assessee had borrowed an unsecured loan of ₹70 lakhs from Diwakar Commercial Pvt. Ltd (DCPL), an NBFC, during the year under consideration and repaid it with interest. The loan transactions were reflected in the regular books of account of DCPL and were conducted through regular banking channels.…

Legal Issues

• 1. Validity of notice and section 153C
• 2. Addition of ₹70,00,000/- under section 68 r.w.s. 115BBE
• 3. Rejection of interest-bearing loan transaction
• 4. Disallowance of interest of Rs. 5,35,932/- as non-business expenditure
• 5. Imaginative addition of alleged commission of Rs. 2,10,000/- under section 69C

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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