Gist of latest important tax caselaws / judgements

Below are the recent important tax caselaws related to Income tax, Service tax, Excise in brief. The citation is made available for your benefit :

INCOME TAX

SECTION 9

INCOME – DEEMED TO ACCRUE OR ARISE IN INDIA

The assessee, an event management company, engaged the services of a non-resident agent to bring the foreign Artists to India. The assessee paid remuneration to the Artists and commission to the agent. It deducted tax on the amounts paid to the Artists but did not deduct tax on the commission paid to the agents. - Sum paid to agent could not be deemed to have arisen from the personal activities in a contracting State in status of entertainer or athlete - Commission paid to the agent was not hit by Article 18(2) of India-UK DTAA, and, therefore, income arising to agent couldn't be said to be taxable in India - Director of Income-tax (International Taxation) v. Wizcraft International Entertainment (P.) Ltd. (2014) 45 taxmann.com 24 (Bombay)     SECTION 92C TRANSFER PRICING - COMPUTATION OF ARM’S LENGTH PRICE Comparables and adjustments/TNMM: Where in transfer pricing proceedings, TPO made adjustment to assessee's ALP in respect of software development services, in view of fact that two comparables selected by TPO were improper on account of very high turnover, impugned adjustment was to be set aside and, matter was to be remanded back for disposal afresh - Adaptec (India) (P.) Ltd. v. Assistant Commissioner of Income-tax (2014) 44 taxmann.com 236 (Hyderabad - Trib.)       SERVICE TAX SECTION 65(27) TAXABLE SERVICES - COMMERCIAL TRAINING OR COACHING SERVICES Prior to 27-2-2010, definition of 'vocational training institute' nowhere mandates that institute must be recognized or accredited; therefore, export import management and retail management and merchandising activities are exempt from service tax even if courses are not approved/affiliated - Commissioner of Service Tax, Delhi v. Ashu Exports (P.) Ltd. (2014) 44 taxmann.com 113 (Delhi)       CENTRAL EXCISE ACT SECTION 35G APPEALS - MAINTAINABILITY OF Question 'whether assessee can avail of SSI-exemption simultaneous with Cenvat credit in respect of goods' relates to interpretation of exemption notification and 'rate of duty' and not appealable before High Court - Commissioner of Central Excise, Mumbai v. BD Industries (2014) 44 taxmann.com 75 (Bombay)     SECTION 35K APPEALS - BINDING NATURE OF PRECEDENTS Where revenue had initiated coercive recovery during pendency of stay application of assessee, said proceedings were quashed and contempt proceedings against revenue were dropped after unconditional apology - Fashion Suitings (P.) Ltd. v. Superintendent, Central Excise & Service Tax (2014) 44 taxmann.com 84 (Rajasthan)