TMI Blog2018 (6) TMI 1566X X X X Extracts X X X X X X X X Extracts X X X X ..... between the total receipts shown in the books and the receipts shown in the service tax return. The assessee has furnished reconciliation explaining the cause of discrepancy in the receipt shown in the 26AS statement and the ld CIT(A) has reproduced the entire list of 91 transactions where the TDS was deducted on the amount including the service tax whereas the assessee has shown the receipts in the books excluding the service tax CIT(A) has considered specific fact of discrepancy in the amount shown in the 26AS in comparison to the books of account. The bills including service tax were raised and the TDS was deducted inclusive of service tax amount of ₹ 1,61,36,763/-. The revenue has not brought any fact or material to contradict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessment. However, thereafter, the Assessing Officer issued notice U/s 148 of the Act on 31/3/2016. In the reassessment proceedings, the Assessing Officer again raised the issue of reconciliation of receipts as per the books of account and as per 26AS, the assessee explained the discrepancy in the receipts being the service tax which was not included in the part of turnover recorded in the books of account whereas the TDS was deducted by the payer on the amount which includes the service tax. Thus, the assessee explained before the Assessing Officer that the discrepancy is due to service tax payable amount of ₹ 1,61,36,763/- on which the TDS was deducted. The Assessing Officer did not accept the explanation of the assessee an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Assessing Officer. 5. On the other hand, the ld AR of the assessee has submitted that the assessee has explained the discrepancy due to the service tax included in the gross receipt whereas the assessee has shown the receipts in the books of account excluding the service tax. Further up to 31/3/2011, the service tax was payable on collection/receipt basis and from 01/4/2011 the service tax has to be paid irrespective of the fact that whether the amount of service tax is received or not. Therefore, the assessee is maintaining its books of account on mercantile basis as per the invoice raised for service provided whereas the service tax return were filed on the basis of amount receive against the serviced provided and due to this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 26AS statement and the ld CIT(A) has reproduced the entire list of 91 transactions where the TDS was deducted on the amount including the service tax whereas the assessee has shown the receipts in the books excluding the service tax. The ld. CIT(A) after considering the reconciliation and explanation has adjudicated the issue in para 3.2.2. as under: 3.2.2 Determination: (i) I have duly considered the submissions of the appellant, assessment order and the material placed on record. The appellant was engaged in the business of advertisement and as per its profit and loss account for the year under consideration, it has declared advertisement sales at ₹ 18,91,17,934/- whereas as per the ITS details, the receipts by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less: credit note issued during the year 40,90,034/- - Add: credit note reversed during the year 69,65,295/- - (iii) Thus, the same as per books of accounts was much more then the sales shown in the service tax returns and reason for the same was submitted that till 31.03.2011, the service tax was payable on collection or receipt basis but w.e.f. 01.04.2011, service tax has to be paid irrespective of the fact whether the payment of the service is received or not. The appellant was maintaining its books of accounts on mercantile basis i.e. on the basis of invoices raised for service provided whereas the service tax returns were filed on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of service tax on which TDS was made by the customers/ deductor of the appellant, the amount in 26AS is appearing on the higher side. Therefore, in view of the totality of facts and circumstances of the case, it is held that the AO was not justified in making impugned addition under consideration and thus the same is hereby deleted. Thus, it is clear that the ld. CIT(A) has considered specific fact of discrepancy in the amount shown in the 26AS in comparison to the books of account. The bills including service tax were raised and the TDS was deducted inclusive of service tax amount of ₹ 1,61,36,763/-. The revenue has not brought any fact or material to contradict the factual details recorded by the ld. CIT(A). Accordingly, we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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