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2019 (3) TMI 154 - AT - Income TaxRectification u/s 254(2) - Royalty - Levy of tax on receipt from other advertisers towards sale of online ad space in Inida under AdWord Program - PE in India - it was contended that, the revenue assessed the receipts in the hands of GIL as business profits should be rectified suitably - HELD THAT:- It was never the case of the AO or the DRP/CIT(A) that receipts from sale of Advertisements under the AdWord Program was business profits of GIL and that it was taxable in the hands of GIL because GIPL constituted PE of GIL in India. The case of the revenue has always been that the said receipts were in the nature of royalty. It was the case of GIL that the receipts were not in the nature of royalty and were in the nature of business profits of GIL and since GIL did not have a PE in India, the said receipts are not chargeable to tax in India. To this extent it can be said that there appears to be a mistake in the order of the Tribunal in paragraph 190 of the order. The appeals were not heard by either of us. We are therefore unable to fathom as to why the Tribunal remanded the case to the AO to reframe assessment in the light of the directions contained in the order. The issue sought to be agitated in this MP before the Tribunal is highly debatable and two views are possible on the issue. In such circumstances, we are of the view that it would not be appropriate to exercise powers u/s.254(2) of the Act as the order does not suffer from any mistake apparent on the face of the record. None of the observations in this order should influence the mind of the parties in their interpretation of the order.- Miscellaneous petition dismissed.
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