I am looking for a view/feedback/contact in Income Tax department (PrayagRaj).. My brother has got a fine of 24 lacs (initial 6.7 lacs in 2022 notice and then double fine plus some other fee and interest) for 2016-17 and I have studied all his notices and tried to understand taxation using ChatGPT and reading all the rules/ nuances around Service Tax/ VAT to GST, referenced in notices.
For 2016-17, his income tax was declared at Rs 4.5 lacs and in 2022, initial notice never detailed on Tax criteria. He builds houses by providing design/Labor/material handling.
Taxpayer challenges service tax demand and penalty for 2016-17 under rules on fraud and evidence requirements A taxpayer received a substantial service tax demand and penalty for the 2016-17 period related to labor supply in construction activities, with declared income significantly lower than the assessed amount. The dispute involves the basis of the demand, including reliance on income tax portal data and discrepancies between tax returns and Form 26AS. Legal opinions cited emphasize that extended periods for demand cannot be invoked without fraud or suppression, and demands cannot be confirmed solely on Form 26AS without proper justification. The advice encourages contesting the case on its merits if genuine documentary evidence supports the transactions, highlighting the importance of integrity and optimism in dealing with tax authorities. (AI Summary)
TaxTMI 
TaxTMI 
