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May 2011

2011) 21 STR 589 (Tri.-Del.) — CCEx., Ludhiana v. Mayfair Resorts.

By Puloma Dalal, Jayesh Gogri Chartered Accountants
Reading Time 1 mins
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Amount declared as income during the course of survey u/s. 133 of the Income-tax Act, 1961 not to be considered as revenue attributable to provision of service in absence of sufficient evidence.

Facts:
The Department was of the view that the amount declared during the course of survey u/s. 133 of Income-tax Act should be treated as receipt for rendition of service. The assessee produced a letter submitted to the income-tax authority which exhibited the date of findings. The letter nowhere stated that the amount was attributable to consideration from provision of service. The Department contended that the disclosure was subject matter of A.Y. 2005-2006 and the same should be considered as consideration for provision of service. The said amount was reflected in the balance sheet as well.

Held:
The matter was in respect of financial year 2004- 2005. The balance sheet did not disclose that the amount was attributable to provision of services. No evidence was produced by the Department. Therefore, the appeal was dismissed.

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