Bombay HC: Stayed the Service Tax demand notice issued to CA based on ITR

Last updated: 30 January 2021

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in Amrish Rameshchandra Shah v. the Union of India &ors. [Writ Petition (L) No. 2103 o 2021, dated January 27, 2021] stayed the show cause-cum-demand notice issued to a Chartered Accountant in a Writ Petition challenging the service tax demand based on Income Tax Returns ("ITR") data and issued notice to the Revenue Department ("Respondent").

Citation :
Amrish Rameshchandra Shah v. the Union of India &ors. [Writ Petition (L) No. 2103 o 2021, dated January 27, 2021]

The Hon'ble Bombay High Court in Amrish Rameshchandra Shah v. the Union of India &ors. [Writ Petition (L) No. 2103 o 2021, dated January 27, 2021] stayed the show cause-cum-demand notice issued to a Chartered Accountant in a Writ Petition challenging the service tax demand based on Income Tax Returns ("ITR") data and issued notice to the Revenue Department ("Respondent").

Facts

This Writ Petition has been filed by AmrishRameshchandra Shah ("Petitioner"/"Assessee"), a Chartered Accountant by profession and a partner in a firm, wherein the Assessee was served with a show cause-cum-demand notice dated December 30, 2020, based on the ITR filed by firm for the relevant year and the Respondent was of view that the remuneration received by Assessee from the firm is subject to service tax that has not been paid.

Petitioner has referred to a decision of the Hon'ble CESTAT, Bangalore in Alpa Management Consultants P. Ltd. Vs. Commissioner of Service Tax [2007(6) S.T.R. 181], where it was held that service tax cannot be recovered based on the figures shown in the ITR.