No Service Tax on Income Declared Under Income Tax Survey: CESTAT Delhi

Agrawal Builders and Colonizers Vs Commissioner of Central Goods (CESTAT Delhi) The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Delhi has set aside a service tax demand of over Rs. 32 lakh against Agrawal Builders and Colonizers, ruling that a demand cannot be sustained if it is based solely on income declared during an income tax survey. The tribunal found that the Department failed to provide any corroborating evidence to prove that the declared income was generated from taxable services. The case, which involved two related firms, arose from an audit in 2011-12 where an a...