Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 929 - AT - Income TaxUnderstatement of turnover - overlapping of turnover reported in service tax return and VAT return due to comprehensive nature of AMC contracts undertaken by the assessee - HELD THAT:- The assessee is in the business of sales and service of computer hardware products and the assessee has also taken AMC contracts. The comprehensive AMC contracts are liable for VAT as well as service tax at respective rates as per rules prescribed for levy of tax on turnover. Accordingly, the assessee has charged VAT and service tax on 70% basic value, which resulted in overlapping of turnover in both VAT and service tax returns. AO on the basis of returns filed by the assessee under VAT and service tax opined that the assessee has understated turnover without appreciating fact that there is overlapping of turnover in both returns. CIT(A), after considering relevant facts and also taking note of reconciliation filed by the assessee explaining turnover declared in service tax return and VAT return has rightly deleted additions made by the AO towards estimation of gross profit on difference in turnover. Assessee has filed reconciliation statement explaining turnover reported in service tax return and VAT return as well as financial statement filed for relevant assessment year. From the above, what we could notice is that there is no difference between financial statement, when compared to turnover reported in service tax return and VAT return filed for relevant assessment years. Therefore, there is no error in the reasons given by the learned CIT(A) to delete additions made by the Assessing Officer towards estimation of gross profit on turnover. Hence, we are inclined to uphold findings of the learned CIT(A) and reject grounds taken by the revenue.
|