The Department initiated the case based on income tax documents, ...

Tax liability upheld due to misstatement of facts in ITR & ST-3 Returns. Failure to provide documents to dept. Interest & penalty imposed.

Case Laws     Service Tax

August 16, 2024

The Department initiated the case based on income tax documents, which were public documents, and the presumption is on their truthfulness. The difference in value based on ITR and ST-3 Returns was due to misstatement of facts. The Department proceeded based on information received from the Income Tax Department regarding income from service provision shown in ITR and income on which TDS was deducted, as well as the gross value of service shown in ST-3 Returns. While relying on TDS/26-AS statements, service tax demand cannot be made under the Service Tax Act, the appellant's conduct of failing to provide documents when asked for by the Department and lack of supporting evidence for the discrepancy cannot be ignored. The differential tax liability was upheld, and interest liability accrued u/s 75 of the Act due to suppression of correct taxable income. The penalty imposed on the appellant for suppressing taxable income was upheld. The appeal was dismissed as there were no reasons to interfere with the impugned order.

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