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2012 (12) TMI 601 - ITAT MUMBAIDisallowance for non-deduction of Tax u/s 40(a)(i) – Assessee utilizes the internet search engine to buy space in advertising on the internet on behalf of its clients - The search engine renders this service outside India through internet – AO made addition considering the same as technical services - Held that:- As the hosting services did not involve use or right to use by the assessee any industrial, commercial or scientific equipment and no such use was actually granted to assessee. Uploading and display of banner advertisement on its portal was entirely the responsibility of the service provider. Therefore payment was not in the nature of royalty or technical service but the same was in the nature of business profit and in the absence of any PE in India, it was not chargeable to tax in India following the decision in case of Yahoo India (P.) Ltd(2011 (6) TMI 162 - ITAT, MUMBAI). Appeal decide in favour of assessee
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