TaxTMI 
TaxTMI 
2010 (11) TMI 220
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....come of Rs. 4,00,000 (Rupees Four Lakhs), which was found in cash in the business premises. Since it appeared that the respondent had no business except providing business auxiliary services to M/s Bharti Airtel Limited, it appeared that the entire undeclared income of Rs. 4,00,000 was the amount received for providing taxable services on which no tax had been paid. It is in this background that a show cause notice dated 27-8-2007 was issued to the respondent for - (a) confirming the service tax demand of Rs. 40,800 against them under proviso to section 73(1) of Finance Act, 1994 alongwith interest on it at the applicable rate under section 75 ibid and (b) imposition of penalty on the respondent under section 76 to section 7....
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....elhi - CESTAT) wherein it was held that income voluntarily disclosed before the Income-tax authorities which was suppressed by the party could not be added the taxable value, for the purpose of service tax unless mere is evidence to prove the same. It is against this order of the Commissioner (Appeals) that the department has come in appeal before the Tribunal. 2. Heard both the sides. 2.1 Shri Anil Khanna, the learned Departmental Representative reiterating the grounds of appeal in the revenue's appeal pleaded that unaccounted income of Rs. 4,00,000 declared by the respondent 6to the Income-tax authorities was the income generated by their activity of providing taxable service of business auxiliary service to their clients,....
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....unsel for the respondent, pleaded that the business auxiliary services had become taxable with effect from 1-7-2003, while the visit of the Income-tax authority's survey team to the Respondent's premises was on 17-10-2003 and the entire declared income of Rs. 4,00,000 cannot be attributed to the period from 1-7-2003 to 17-10-2003, as for generating income of Rs. 4,00,000 during this period of about three months turnover of Rs. 2,50,00,000 would be required, which is not possible" for a small businessman like the respondent, that no inquiry had been made with the respondent and no statement had been recorded for ascertaining about the source of the income of Rs. 4,00,000 declared to the Income-tax. authorities, that in view of this, it canno....
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....rom both the sides and perused the records. 4. The admitted facts are that the respondent sell the mobile phones and beside this, also sell the SIM cards, recharge coupons of M/s Bharti Airtel Limited. There is also no dispute about the fact that during the visit of the survey team the Income-tax authorities on 17-10-2003, the respondent declared an undeclared income of Rs. 4,00,000 to lie Income-tax authorities which was added to their taxable income for 2003-2004. However, I find that the department's allegation that the income of Rs. 4,00,000 declared by the respondent to the Income-tax authorities is attributable to business auxiliary service provided to their clients is based on the assumption that the respondent have no other ....