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2020 (8) TMI 120 - AT - Income TaxTDS u/s 195 - payment made outside as fees for technical services - disallowing expense on the ground of non-deduction of withholding tax on such expenses - HELD THAT:- In the case of Pinstorm Technologies (P.) Ltd. [2012 (12) TMI 601 - ITAT MUMBAI] it is held that payment made to non-resident for uploading and display of banner advertisement on its portal, in absence of any PE of non-resident in India would not be chargeable to tax in India. In the case of ITO vs. Right Florist [2013 (4) TMI 338 - ITAT KOLKATA] it is held that fees for online advertisement could not be considered as fees for technical services in view of provision of tax treaties with U.S.A. We consider that there was no sharing of knowledge or know-how or any technology to the assessee as prescribed in the Article 12 of the DTAA between India and U.SA., therefore, we find substance in the assertion of the assessee that tax was not deducted u/s. 195 of the Act since the payment made was not taxable in India. Accordingly, the appeal of the assessee is allowed.
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