Gauhati High Court Holds Service Tax Demand Based Solely on Form 26AS Data Without Examining Exemption or Willful Suppression Is Invalid
The Gauhati High Court has quashed a service tax demand and penalty imposed on a healthcare provider, ruling that tax liability cannot be determined solely on the basis of Form 26AS data from the Income Tax Department without examining the nature of services and applicable exemptions. The Court also held that invocation of the extended limitation period under Section 73(1) requires a conclusive finding of willful suppression or intent to evade tax.
