2024 (10) TMI 289

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....-4 has reported an income of Rs. 70,13,360/- under the Head 'Other Income' and Sub-Head  'Commission' in their Profit and Loss Account for the financial year 2014-15. Further, in the subsequent Income Tax Returns filed by the appellant for the Assessment Years 2016-17, 2017-18 and 2018-19, it has been declared that they were not required to maintain books of account and to get them audited but has declared its income from business/profession as Gross Receipts at Sr. 53 of the P&L Account. It appealed to the department that the appellant had collected some consideration in lieu of providing certain activities carried out for their customers which amounts to 'Service' as defined under clause (44) of section 65B of the Finance Act, 1984. ....

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....ire amount of commission was shown by the appellants in their income tax returns and the tax liability under direct taxes was duly discharged by the appellants. 3. The appellant replied to the show cause notice, through his letter dated 03.02.2021. Letters dated 30.09.2021 & 03.12.2021 were filed before the adjudicating authority seeking for adjournment on the ground of the then going COVID situation. But neither the submissions in the reply nor the opportunity to appear before adjudicating authority was given to the appellant. The demand, interest and penalty proposed in the show cause notice was confirmed against the appellant ex-parte by the original adjudicating authority. Additional penalty of Rs. 10,000/- was imposed. 4. Learned C....

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....d in calculation of service tax as alleged by the Appellant incomes in question & the agricultural income are mentioned separately in the ITR as well as in profit and loss statement. The contention of the appellant that for FY 2014-15, the amount of Rs. 70,13,350/- includes agriculture income also, but the same was not accepted because as per records agriculture income was only Rs. 3,92,200/- which was over and above the income of Rs. 70,13,350/- The said Income for the period April 2014 to Sept 2014 was reduced as the same was not covered in the SCN. The Appellate Authority has re-quantified the amount to Rs 9,05,013/- along with interest and penalty. Further, the Appellant could not produce any evidence of non-taxability of business incom....

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....out tax deducted/collected and deposited with the government. ITR is the consolidated statement of the assesse about his income, expenses & tax payable during a financial year. Hence, the argument that demand is liable to be set aside as it is based on 26AS, is not correct. Otherwise also, The SCN is based not merely on ITR but also on Profit and loss account filed by the Appellant declaring their income and nature of receipt i.e Commission. Based on those documents I hold that there is no ambiguity with respect to the alleged income of appellant as commission which otherwise is not disputed by the appellant. The ITR figures are duly audited and declared by them to the Income Tax department. 9. The case laws cited by the Appellant are the....