TaxTMI 
TaxTMI 
2026 (1) TMI 114
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....ellant having PAN No.AAIPQ6530F was not registered with Service Tax Department. 2.2 On the basis of third party information received from Income Tax Department regarding gross receipt of Rs.26,70,950/- against sale of services declared by the appellant in ITR for the F.Y. 2016-17. 2.3 Vide letters dated 12.05.2021 & 23.06.2021 appellant was asked to clarify in this regard. In response appellant has only provided the document as Form 26AS (for the period 2016-17), Copy of ITR. 2.4 On the basis of available information it was observed that appellant has short paid service tax as detailed in table below:- Financial Year Sale of Services as per ITR Service Tax payable @ (incl. cesses) Service Tax not paid 2016-17 26,70,950 15% 4,00,643/- 2.5 Show cause notice dated 18.10.2021 was issued to the appellant, asking them to show cause as to why:- "(i) Service Tax liability of Rs.400643/- should not be demanded and recovered from them under the proviso to the section 73 (1) of the Act along with interest under section 75 of the ibid. (ii) Penalty should not be imposed upon them under section 78 of the Act, for the suppression of facts fro....
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.... 4.4.1 It is observed that appellant has claimed the sale of soil to be non taxable for service tax. It is observed that sale of goods has been made non-taxable in terms of negative list of services under Section 66D(e) of the Act, which provides as under: "Section 66D(e): trading of goods;" 4.4.2 In order to ascertain the actual nature of services provided by the appellant, all the relevant documents are required to be examined. Here at the appellate stage, appellant has provided copy of Form 26AS for 2016-17, sample copy of sale bills and a statement of sale details. On going through the details of the bills, it is observed that it contains the name of purchaser, name of commodity as soil, details of Tractor trolley No.'s. and rate/amount. It is observed that bills provided do not contain printed serial Number and any detail of seller and complete details of purchaser and seems to be prepared in cyclostyled manner to show the activities as sale of goods. Further no details of vehicle owners and payments made to vehicle owners, diesel purchase for transportation of soil has been made available. In absence of such supporting details/documents, the natu....
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.... under Section 77(1)(a), Section 77(2) and 77(1)(c) of the Act." 4.3 I find that appellant had produced a copy of ITR-3 for the Assessment Year 2017-18 (F.Y. 2016-17), page No.5 of the ITR is reproduced below:- 4.4 Revenue has taken this figure indicated towards sale of service as gross receipts during this year for computation of their service tax liability. Appellant has also produced a copy of form 26AS which is reproduced below:- 4.5 From form 26AS of the appellant, it is evident that appellant have not received any amount on which TDS has been deducted towards provision of services under various Sections (from Section 194 A to D). The basic question arises, if appellant was having their receipts to the tune of Rs.26 lakhs towards sale of services, why the same do not reflect in their form 26AS? 4.6 Appellant have produced invoices, bills etc. before the Commissioner (Appeals) to stake their claim that they were engaged in the activity of sale of soil, for which this amount has been received, however, Commissioner (Appeals) rejected that argument. 4.7 I find that appellant produced copies of balance sheet and profit and loss account for the year 2015-16 and 2016-....
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.... Total F + i + #] 2670950 Gross receipts Biom Profession C Duties, taxes and cess, thcshned or receivable, in respect of goods and services sold or supplied Union Excise duses 0 Service tax r WAT/ Sales tax Any other duty, tao and cess Total ( ++ +i) Total Revenue from operations (Al + B+Cv) 1D 2570960 1 Other income Rent i r Commission r Dividend income Interest income Prolit on sale of fixed assets Prolit on sale of investment being securities chargeable to Securities Transaction Tin (STT Profit on sale of ather investment Profit on account of cunoscy fluctuation Agricultural income Any other income (specify nature and amount) N Any other income (specify nature and amount) Page 5 Document 2 Data updated till 23-Apr-20 TDS TRACES Centralized Processing Cell TDS Reconciliation Analysis and Correction Enabling System Income Tax Departmere 18 Form 26AS Annual Tax Statement under Section 203AA of the Income Tax Act, 1961 . See Section 203AA and second provision to Section 206C (5) of the Income Tax Act, 1961 and Rule 3LAB of Income Tax Rules, 1962 ....
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....0.00 0.00 80.00 0004329 13-Jul-2020 01760 1 0021 300 4160.00 0.00 0.00 4160.00 0290027 27-Mar-2018 00058 Part D - Details of Paid Refund Assesslicht Year Refuad Issued Nature of Refuad Amount of Refund Interest Date of Payment Remarks No Transactions Present Part E - Details of SET Transaction Type Of Transaction Nane of SET Filer Amsust (R.) Document 3 MR. KAMRUDDIN S/O MR. HAZI MANJOOR AHMAD MUGRA BADSHAHPUR, JAUNPUR UP BALANCE SHEET AS AT 31st MAR, 2016 Liabilities Amount Proprietor's Capital Account Mr. Kamruddin Opening Capital 1,42,749.00 Add : Adarsh Construction 2,50,100.00 Add : Bank Intt From RD 6,600.00 Add : Intt. On 5/B 838.00 Add : Gas Subsidy 1,987.78 Add : Intt. From N.S.C New 2,550.00 Add : Init. From RD A/c Add : Net Profit 1,25,000.00 5,29,824.78 Less: LIC PMJJBY 660.00 Less: Intt on Bank Loan 3,833.00 Less: Withdrawls 60,000.00 4,65,331.78 Un -Secured Loans Mohd, Khalid 35,304.50 35,304.50 Secured Loans UBI TL A/C NO -3457070 18,833.00 48,833.00 Current Liabilities Sundry Creditors :- Nil Total 5,49,469.28 Investment & Deposits Post Ofice RD A/c No....