TaxTMI 
TaxTMI 
2022 (3) TMI 230
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.... The appellants had filed their income tax returns showing components such as 'sale of services', against which partners have shown certain amount received from the partnership firm as their income. The said income tax returns were supplied to the authorities below, who after examining the same raised a query to the appellants, why not on account of sale of service be taxed under the Finance Act, 1994. The appellants replied to the queries but authorities below confirmed the demands on account of service tax payable by the appellants. Aggrieved by the said orders, the appellants are before us. 3. The learned counsel appearing on behalf of the appellants submits that appellants are partners of partnership firm and they received certain renu....
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....es. Considered their submissions. 6. On going through the records placed and arguments advanced before us, we find that the service recipient at the best in this case is only a partnership firm. The partner of a partnership firm is none other than the same, therefore, one would cannot provide service to oneself. As there is no recipient of service in this case, no service has been provided by the appellant. In the income tax returns, the figures shown by the appellants as sale of service is just a portion of the profit earned by them from the partnership firm. In that circumstance, on merits itself, the appellants are not liable to pay service tax. Moreover, our view has got support from the decision of the Hon'ble Mumbai High Court in the....