Notice of Service tax for 16-17 for Labor supply

[Rohit Singh]

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.

AI Summary

Reliance on Form 26AS or tax portal records cannot alone sustain a service tax demand; contest on documentary merits.
Reliance solely on income tax portal entries or Form 26AS is inadequate to sustain a service tax demand; the extended assessment period cannot be invoked absent proven fraud, suppression or concealment. Where transactions are genuine and supported by documentary evidence, the appropriate response is to contest the demand on merits, challenging the evidentiary basis of third party data and the absence of a demonstrated concealment.