2022 (11) TMI 576

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.... learned Assessing Officer has made an addition of Rs.19,55,652/- being the difference between sales as perprofit and loss account and gross services as per service tax return to the income of the assessee and confirmed by the learned CIT(A). Assessee has raised following grounds of appeal: - "1. The Appellant-Assessee-M/s Royal Palms Property Pvt. Ltd. (hereinafter referred to as 'Assessee') begs to prefer the following amongst other Grounds of Appeal against the Order of the Hon'ble Commissioner of Income Tax (Appeals)-21, Mumbai [hereinafter referred to as 'the Hon'ble CIT (A)'] dated May 09, 2017, in the Assessee's case for A.Y. 2013-14: I. In the facts and circumstances of the case, the Hon'ble CIT(A) erred in dismiss....

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....e during the F.Y., and the reflected sum of Rs.1,04,71,368/- in the Profit and Loss Account should be allowed and the additions made on account of this alleged difference between the service tax return and the books of accounts may kindly be deleted." 3. Assessee is a company engaged in the business and profession filed the return of income on 07/06/2014 declaring total income of Rs.12,73,398/-. The return was picked up for scrutiny. On looking at the individual transaction statement Assessing Officer noted that in profit and loss account assessee has shown gross turnover of Rs.1,04,74,368/- whereas as per the service tax return gross receipt is Rs.1,24,27,020/- and therefore, the difference of Rs.19,55,652/- between sales as per profit ....

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.... is not furnished and therefore he confirmed the addition by appellate order dated 09/05/2017. Therefore, aggrieved with the same assessee is in appeal before us. 6. At the time of hearing, it has come to notice that the order of the learned CIT(A) appeal is received by the assessee on 15/06/2017 whereas the impugned appeal is filed on 17/09/2019 and therefore, there is a substantial delay in filing of the appeal. The assessee explained delay in filing of the appeal by filing an affidavit of the Director of the assessee company. In the affidavit, it was stated that the order was received by employee of the assessee company and the delay caused in filing of the appeal of 764 days at the time of reviewing the pending tax related matters in....

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..... We have carefully considered the rival contentions and perused orders of the lower authorities. In the present case, the addition has been made in the hands of the assessee on account of difference in turnover shown in service tax returns as well as gross receipts shown in the books of account. Assessee has categorically stated that service tax was payable on receipt basis till 1stMarch 2011 and later on same was changed on approval basis. Further, it is admitted fact that service tax is also payable on advances received. It is also the fact that the money, which was not received and outstanding in earlier years, but was received during the F.Y. 2012-13 is also required to be included in service tax turnover. The turnover for service tax ....