Service Tax Cannot Be Demanded Only for Mismatch in Income Tax-Service Tax Return

Kirodiwal Associates Vs Commissioner (CESTAT Delhi) The appeal challenges Order-in-Appeal No. 172/2023-24 dated 05.10.2023, which upheld a service tax demand against the appellant. The dispute arose when the department, during verification of third-party data for FY 2015-16 obtained from the Income Tax Department, noticed that the gross receipts declared in the appellant’s Income Tax Return were ₹1,24,91,872, while the gross value declared in ST-3 service tax returns for the same period was ₹1,08,11,345. The difference of ₹16,80,527 led to a proposed service tax demand of ₹2,43,637 a...