ITA No. 2208/Mum/2024 & ITA No. 5169/Mum/2025

Parties Involved

Facts Summary

The case involves Moxa Diamond Pvt Ltd, a private limited company engaged in the business of import, export, and trading of diamonds. The assessee's case was reopened under section 148 of the Income Tax Act, 1961, and an addition of Rs. 61,53,804/- was made under section 68 of the Act on account of 'unexplained credit' being accommodation entries from companies managed by Shivpal Vora. The assessee denied any transactions with Shivpal Vora and submitted various documents to support its claim. The CIT(A) deleted the addition based on the lack of documentary evidence connecting the assessee with Shivpal Vora.…

Legal Issues

• 1. Whether the Assessing Officer erred in reopening the case without following the respective provisions of the Act.
• 2. Whether the Assessing Officer erred in confirming the reopening of the case based on vague reasons.
• 3. Whether the CIT(A) erred in confirming the reopening of the case without proper inquiry.
• 4. Whether the Assessing Officer erred in reopening the case under section 148 and overrode specific provisions of the Act under section 153C.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• ACIT – 19(1), Mumbai Vs. Parul Diamond

  H(SMC) Bench, Mumbai benchAY 2007-08Dismissed

• Prabhatbhai Khodabhai Desai vs. Income Tax Officer

  Ahmedabad bench

• Shashi Kant Chaurasia Vs. DCIT

  Delhi Bench benchAY 2018-19 & 2019-20Partly Allowed

• Progressive Surface Systems Private Limited vs. Circle 13(1)(2)

  Mumbai Bench benchAY 2013-14Allowed

• Gyan Enterprises Pvt. Ltd. (AY: 2012-13)

  A Bench, Delhi benchAY 2012-13Allowed

• Agarwal Finestate Pvt. Ltd. Vs Income Tax Officer, Ward-1(1), New Delhi-110002