Demand for 2014-15 merely on the ground of diff value per 26AS staement Vis-a vis ST 3 returns

[Subhash Kulkarni]

Sir,

-ST demands merely based on diff between the value appearing as per IT returns (26AS Form) under the pretext that the assessee did not respond to the Dept with desired docs such as B/s., P & L A/c , Trial balance for April 17 to June 17 etc

- Audit under EA 2000 conducted by Dept for the entire period upto June 2017 (pre-GST) based on the docs so desired above and hv in fact been provided to audit team

- Based on scrutiny and verification of all the records, the deficiencies towards short payment of ST observed by Audit group for the period upto June 2017

-In line with SVLDR scheme, the assessee opted for payment of dues without goint into further litigations and made the payments which has been accepted and neecessary certificate to the extent in prescribe f Form too has been issued

- With the above factual positions, whether Dept is at liberty to challange the Reco with IT returns for the -period upto June 2017 ?

- Whether the extended period is invokable ?

- For the period Aperil to June 2017, despite the fact that all the records were filed, whether the SCN demanding the ST on best judgement is valid ?

Your comments and help along with case law shall be haighly obliged

AI Summary

Best judgment assessment cannot rest solely on return-to-return discrepancies; documentary proof of suppression is required.
Demand based solely on discrepancies between income tax records and service tax returns is inadequate unless supported by independent documentary evidence of suppression or mis-declaration; best-judgement assessments require production of accounts and opportunity to be heard, and extended limitation may be invoked only where falsification or concealment is demonstrable, while prior scheme-based discharge may be reopened if false declarations are subsequently established.