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TMI Blog2022 (11) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... The difference between gross receipt shown by the assessee in service tax return and in the books of accounts may be the first trigger point of investigation and reconciliation, but unless there is difference which shows that there is lower income offered by the assessee in its tax return, the addition cannot be made. We direct the assessee to submit the party wise reconciliation of income offered in the profit and loss account with the amount of gross receipts on which service tax is collected and reconcile the difference between the two. If the advances are received during the year, assessee should also demonstrate that these sums are disclosed in advance received from the customers. Therefore, it is the duty of the assessee to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I. In the facts and circumstances of the case, the Hon ble CIT(A) erred in dismissing the Assessee s appeal and in doing so, the Hon ble CIT(A) erred in confirming the disallowance of Rs.19,55,625/- made by the learned Assessing Officer II. The Hon ble CIT(A) erred in not appreciating that the difference in the receipt of sum of Rs.1,24,250,020/- on account of sales made during the Financial Year relevant to A.Y. 2013-14, and the reflected sum of Rs.1,04,71,368/- in the profit and loss account, was on account of revenue amount mentioned in service tax returns vis-s-vis the Profit and Loss Account of the Assessee. III. The Hon ble CIT(A) erred in not appreciating that the service tax return of the Assessee was based on the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the difference of Rs.19,55,652/- between sales as per profit and loss accounts and service tax return. The assessee submitted explanation as per letter dated 16/02/2016 which was rejected and assessment order under Section 143(3) of the Income Tax passed on 26/06/2016 declaring the total income of the assessee at Rs.32,27,050/- 4. Assessee preferred an appeal before the ld.CIT(A). Assessee submitted that difference is on account of the provisions of the Finance Act, 1984 where till February2011, service tax was payable on receipt basis and later on it was charged on accrual [ billing]basis. It was submitted that even on the advance received service tax was payable. Further, services which was not received till 1stMarch2011, servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 764 days at the time of reviewing the pending tax related matters in 2019 it came to knowledge of the assessee that the learned CIT(A) has already disposed off the appeal of the assessee. However, same could not be traced. Only on 25thJuly 2019 it was found to be lying in the file of employee. Therefore, the delay is on account of ignorance of the employees and further as soon as it came to notice of assessee in July 2019 immediately assessee contacted the counsel of the assessee who advised to file the appeal. Accordingly, on 17/09/2019 the appeal was filed. Therefore, the delay in filing of the appeal is due to inadvertent omission on account of assessee. It was stated that it is a sufficient cause for the delay and therefore, same may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be included in service tax turnover. The turnover for service tax for first half of F.Y. 2012-13 was shown at Rs.20,55,436/- and for second half at Rs.1,03,71,584/-. Thus, the total turnover as per service tax return is shown as Rs.1,24,27,020/- whereas turnover as per books of accounts is only Rs.1,04,71,368/-. Thus, naturally the turnover as per books of accounts were shown less by Rs.19,55,652/-. For the F.Y. 2011-12 the service tax turnover was shown as Rs.49,11,311/- whereas the turnover as per books of accounts is Rs.91,28,374/-. Therefore, in earlier year assessee has shown higher turnover of Rs.42,17,063/- in the books of accounts. In view of this, it is possible that the turnover in service tax return is on account of receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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