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2023 (3) TMI 1304 - ITAT BENGALURUIncome deemed to accrue or arise in India - Royalty or FTS - Taxability of payments received by the assessee from GIPL as per terms of the distribution agreement as well as the payments received by the assessee directly from Indian advertisers - HELD THAT:- As regards assessment years 2009-10 to 2012-13 [2022 (10) TMI 1039 - ITAT BANGALORE] the issue was decided in favour of GIPL by the Tribunal by holding that the impugned payment made by it to GIL cannot be characterised as royalty under Act or DTAA The payment made by GIPL to GIL is not in the nature of Royalty or FTS under the Act and DTAA, a different treatment cannot taken in the hands of the payee, i.e. the assessee in the instant case. The contentions raised in the written submission of the learned D.R. has been addressed by the Tribunal in the payer’s case i.e. GIPL (supra). Hence, we are not dealing with the same in this order. Therefore, we hold that a sum cannot be brought to tax in the hands of the assessee. Receipt on sale of advertisement space from Indian customers other than GIPL - The contentions raised by the learned D.R. in her written submission regarding receipt from other Indian customers has been dealt with in the order of the Tribunal in the case of GIPL (supra). Therefore, we hold that the payment on online advertisement is not liable to be taxed as Royalty in view of the aforesaid judicial pronouncements. It is ordered accordingly.
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