TMI Blog2017 (12) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... even if it is admitted to be an actual income, as consideration for a taxable service. The appellants did file returns under Section 70 and also made available all the contracts on which service tax liability will arise for them. As such, application of Section 72 cannot be extended based solely on the income tax return without identifying the specific taxable service or service recipient. Demand not sustainable - appeal allowed - decided in favor of appellant. - Service Tax Appeal No.60499 of 2013 - ST/A/58418/2017-CU[DB] - Dated:- 14-12-2017 - Shri S.K. Mohanty, Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri A. K. Batra, Consultant for the appellant Shri Ranjan Khanna, Authorized Representative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of ₹ 71,271/- which was confirmed on the ground that certain taxable considerations for providing service as evidenced from TDS Certificate of Income Tax have not suffered service tax and an amount of ₹ 39,084/- as there is no record to defend their case. Thus, these two amounts are not contested. However, the learned Consultant submitted that service tax demand of ₹ 10,26,800/- attributable to the taxable income of ₹ 90,09,321/- is not sustainable. This taxable value has been arrived at by the lower authorities in terms of best judgment under Section 72 of Finance Act, 1994. The main basis of arriving at this figure is Income Tax returns filed under Section 44AD of Income Tax Act, 1961. The said provision provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormed basis for service tax demand as the income shown is much higher than the declared consideration for taxable service. We note that the appellants categorically asserted that they did not provide any other service other than those, the details of which have been submitted to the lower authorities. The Revenue also could not point out excess receipt on these contracts or the taxable service which gave them the consideration escaping the tax. In the absence of specific allegation with reference to the nature of service or the service recipient it is not tenable to hold an income of the appellant even if it is admitted to be an actual income, as consideration for a taxable service. The minimum requirement to tax an assessee for service tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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