Gist of recent important tax 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
Permanent Establishment : Where there was some place at disposal of assessee a non-resident company registered in Mauritius or its employees during entire period of stay in India for rendering extensive services to Indian company, it constituted PE in India under India-Mauritius DTAA - Renoir Consulting Ltd. v. Deputy Director of Income Tax (International Taxation) 2 (1) (2014) 45 taxmann.com 112 (Mumbai - Trib.)
SECTION 35AB
TECHNICAL KNOW-HOW EXPENDITURE
Allowability of : Even if there is expenditure for acquisition of technical know-how, provision of section 35AB would not apply, if it is revenue expenditure; it is allowable only under section 37(1) - Deputy Commissioner of Income-tax (Assistant) v. Cibatul Ltd. (2014) 45 taxmann.com 143 (Gujarat)     SECTION 115JB MINIMUM ALTERNATE TAX Provision for bad and doubtful debts : In view of retrospective amendment brought by Finance (No.2) Act, 2009 in section 115JB, Assessing Officer was justified in initiating reassessment proceedings taking a view that assessee was required to add 'provision for bad and doubtful debts' to net profit while computing book profits under section 115JB - Shakti Insulated Wires (P.) Ltd. v. Income-tax Officer, Ward 9(3), Mumbai (2014) 45 taxmann.com 31 (Mumbai - Trib.) Provision for bad and doubtful debts : Since accounting principles on basis of which accounts are prepared under Companies Act, terms 'bad debts' and 'provision for bad and doubtful debts' have distinct meaning, Assessing Officer was justified in making addition of said provision in computing 'book profit' under section 115JB - Shakti Insulated Wires (P.) Ltd. v. Income-tax Officer, Ward 9(3), Mumbai (2014) 45 taxmann.com 31 (Mumbai - Trib.)     SECTION 220 COLLECTION AND RECOVERY OF TAX - WHEN TAX PAYABLE AND WHEN ASSESSEE DEEMED IN DEFAULT Interest under section 220(2) : Where assessment made originally by Assessing Officer is either varied or even set aside by appellate authority, but on further appeal, original order of Assessing Officer is restored either in part or wholly, interest under section 220(2) shall be computed with reference to date reckoned from original demand notice and with reference to tax finally determined - Lenoleum House v. Income-tax Officer (2014) 45 taxmann.com 185 (Allahabad)       SERVICE TAX SECTION 65(105)(zzzm) TAXABLE SERVICES - SALE OF ADVERTISING SPACE OR TIME SERVICES Fees collected by a Municipal Corporation for granting written permission for conducting business of advertisement agency was a part of functions imposed on Corporation under legislation and is not liable to service tax - Nagar Nigam, Agra v. Commissioner (ADJ.), Kanpur (2014) 45 taxmann.com 165 (New Delhi - CESTAT)       SECTION 73 RECOVERY - OF DUTY OR TAX NOT LEVIED/PAID OR SHORT-LEVIED/PAID OR ERRONEOUSLY REFUNDED Where notice demanding service tax on services provided by company was issued in name of director portraying director as 'proprietor', said notice was liable to be set aside as misjoinder - Bhavna Jayantibhai Desai v. Commissioner of Central Excise & Service Tax, Rajkot (2014) 45 taxmann.com 167 (Ahmedabad - CESTAT)