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2021 (9) TMI 852 - AT - Income TaxTDS u/s 195 - Consideration for advertisement is paid to the overseas bank account of Non-resident - DTAA entered between India and Ireland, the AO held that the above said payments are taxable in India primarily as 'royalty' and alternatively as FTS/FIS - demand u/s. 201(1) @ 20% of the payments and also charged interest u/s. 201(1A) - HELD THAT:- The facts prevailing in the instant cases are identical with the facts of M/s. Urban Ladder [2021 (8) TMI 927 - ITAT BANGALORE] with regard to the payments made to M/s. Facebook, Ireland towards advertisement charges. Accordingly, following above said decision, we hold that the payments made by the assessee the non-resident company M/s. Facebook, Ireland cannot be considered ad "royalty payments" and hence they do not give rise any income chargeable in India under Indian Income tax Act in all the three years under consideration. There is no requirement to deduct tax at source from those payments u/s. 195 - Hence the assessee herein cannot be considered as an assessee in default u/s. 201(1) of the Act. Accordingly, we set aside the orders passed by Ld. CIT(A) for the years under consideration and direct the AO to delete the demand raised u/s. 201(1) of the Act and also the consequential interest charged u/s. 201(1A) of the Act - Decided in favour of assessee.
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