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2023 (4) TMI 733 - ITAT PUNERevision u/s 263 by CIT - Underreporting of income - criterion for selection of case for limited scrutiny was `Contract receipts/fees mismatch' - there was a mismatch between the amount of revenue as per service tax return and the amount offered as per income-tax return inasmuch as less revenue was shown in income tax return - HELD THAT:- Under the column B1.2 “Amount received in advance for services for which bills/invoices/challans or any other documents have not been issued”, the amount has been shown as Nil in the service tax return for the last quarter, i.e. Jan to March, 2015. This obviously contravenes what the assessee made out a case and what is the position as per the service tax return. AR contended that a sum was the amount received as advance from its customer for rendering the services, the assessee itself mentioned Nil as the amount received in advance, in its service tax return. This apparent contradiction ought to have been examined by the AO who, after seeing reconciliation filed by the assessee showing some amount as advance, did not go further to ascertain as to why the assessee had declared Nil figure of advance in its service tax return. Lesser amount of revenue shown in income tax return vis-à-vis the service tax return, if not successfully proved, would have gone to swell income for the year under consideration. We are satisfied that the assessment order passed by the AO on this score was erroneous and prejudicial to the interest of the Revenue which was rightly taken cognizance of by the ld. Pr.CIT u/s.263 - Decided against assessee.
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