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TMI Blog2022 (5) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... both VAT and service tax returns. AO on the basis of returns filed by the assessee under VAT and service tax opined that the assessee has understated turnover without appreciating fact that there is overlapping of turnover in both returns. CIT(A), after considering relevant facts and also taking note of reconciliation filed by the assessee explaining turnover declared in service tax return and VAT return has rightly deleted additions made by the AO towards estimation of gross profit on difference in turnover. Assessee has filed reconciliation statement explaining turnover reported in service tax return and VAT return as well as financial statement filed for relevant assessment year. From the above, what we could notice is that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has understated its turnover in books of account. Aggrieved, the assessee filed an appeal before the learned CIT(A), and challenged additions made by the Assessing Officer towards understatement of gross profit on turnover. The learned CIT(A), for the reasons stated in his appellate order dated 27.02.2018, has deleted additions made by the Assessing Officer. The revenue has challenged order passed by the learned CIT(A) before the Tribunal and challenged deletion of understatement of turnover to the tune of Rs. 7,56,20,161/- vide ground Nos. 2.1 to 2.4. The Tribunal had disposed off appeal filed by the Revenue, however, did not adjudicate ground Nos. 2.1 to 2.4 filed by the revenue challenging findings of the learned CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AMC in both Service Tax Return/VAT. 2.4 The Ld. CIT(A) failed to appreciate that in proving a claim the primary onus is on the assessee which it failed to discharge and the claim of overlapping of revenue under Service Tax/VAT have been accepted by the Ld. CIT(A) merely based on a reconciliation statement filed by the assessee, without any evidentiary value. 3. The learned DR submitted that the learned CIT(A) erred in directing the Assessing Officer to delete additions made towards understatement of turnover to the tune of Rs. 7,56,20,161/- without appreciating fact that the assessee failed to produce proper evidence/documents in support of its claim that difference between sales figure as per financials, vis- -vis. returns file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturns. The learned CIT(A), after considering relevant facts has rightly deleted additions made by the Assessing Officer and their order should be upheld. 5. We have heard both the parties, perused material available on record and gone through orders of the authorities below. The assessee company is engaged in the business of sales and service of computer hardware products. The assessee also takes AMC contract for computer hardware products. The assessee raises two kinds of invoices to its customers. In respect of comprehensive contracts, which involves materials and labour, it charges VAT and service tax at the rate prescribed by relevant Acts. In respect of non-comprehensive contract, same is categorized either under VAT or service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s undertaken by the assessee. As we have already stated in earlier part of this order, the assessee is in the business of sales and service of computer hardware products and the assessee has also taken AMC contracts. The comprehensive AMC contracts are liable for VAT as well as service tax at respective rates as per rules prescribed for levy of tax on turnover. Accordingly, the assessee has charged VAT and service tax on 70% basic value, which resulted in overlapping of turnover in both VAT and service tax returns. The Assessing Officer on the basis of returns filed by the assessee under VAT and service tax opined that the assessee has understated turnover without appreciating fact that there is overlapping of turnover in both returns. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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