GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (2) TMI 130 - GUJARAT HIGH COURT

2016 (2) TMI 130 - GUJARAT HIGH COURT - TMI - Reopening of assessment - Income of the assessee chargeable to tax having escaped assessment - Held that:- We may recall that the reason recorded by the Assessing Officer for issuing the impugned notice states that the assessee had leased out a property for monthly rent of ₹ 3 lacs, which was exclusive of the service tax. He had collected service tax of ₹ 8.23 lacs and showed it under the head of administrative and other expenses. Accordi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

7; 8.23 lacs of service tax separately as expense, in the ultimate analysis, it was this sum of ₹ 36 lacs which was chargeable to tax. In other words, the service tax component of ₹ 8.23 is not only as per the CBDT circular, even as per the Assessing Officer himself, as indicated in the reasons recorded, was not chargeable to tax. That being the position, mere accounting entry or even if there was some defect in indicating such amount in the accounts presented by the assessee, as lon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

respondent-Assessing Officer desires to reopen the assessment of the petitioner for the Assessment Year 2010-11. Such assessment order was originally framed after scrutiny. To issue such notice for reopening of assessment, the Assessing Officer had recorded following reasons:- The assessee company had filed its return of income for the year on 11.10.2010 declaring gross total income at ₹ 11,36,670/- and the same is set off against brought forward loss of A.Y. 2007-08 (unabsorbed depreciati .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d, however indicates that the assessee company had debited Service Tax of ₹ 8,23,397/- under the head administrative & other expenses as per Schedule-IT. In view of the above, the assessee should have offered ₹ 44,23,397/- (Rs.36,00,000/- + ₹ 8,23,397/-) as the total lease rent income and thereafter should have claimed ₹ 8,23,397/- as service tax as expense. Failure to do so has resulted in underassessment of income to the extent of ₹ 8,23,397/-. Hence, I have r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ioner. The petitioner's main income was rental income. The Assessing Officer had raised written queries, which the petitioner had replied. Only being satisfied about the return filed by the petitioner, the same was accepted. Any addition now would only be on the basis of change of opinion. II. That there is no escapement of income from tax. A sum of ₹ 8.23 lacs represented service tax on the lease rent. As per the CBDT circular No.4/2008 dated 28.04.2008, the service tax paid by the te .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not be any difference in the ultimate tax liability. 4. On the other hand, learned Counsel Shri Parikh for the Department opposed the petition contending that in the original scrutiny assessment, this issue was not examined. The petitioner should have disclosed gross income of ₹ 44.23 lacs from rentals, instead he separated service tax element and showed only ₹ 36 lacs of rental income for tax. He lastly submitted that even for the assessment completed under Section 115JB of the Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version