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TMI Blog2019 (8) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the tax at source, which the Petitioner had done in terms of Section 194C of the Act, whereas the department argues that the same should have been under Section 194J of the Act. We notice that a small portion of these amounts comprises of a sum of payment on which the Petitioner did not deduct the tax at source contending that there was no accrual of liability and that therefore the payment was not to be made during the relevant period. The Petitioner is strongly resisted by the department on the ground of availability of alternative statutory appellate remedy, as also on merits. 2. Brief facts are as under : The Petitioner company is an advertising and media agency, engaged in the business of advertising by creative and production work, media planning and incidental activities. The central dispute between the Petitioner and the Income Tax Department is the question of deduction of tax at source while the Petitioner company makes the payments to the agencies for such services provided. According to the Petitioner, the deduction of tax at source would be made in terms of Section 194C of the Income Tax Act, 1961 ('the Act' for short) as payments to the contractors. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peaking impugned orders passed by the said authority and contended that the Income Tax Officer (TDS) had done extensive research on the nature of service provided to the Petitioner and the payments made by the Petitioner to various such agencies for such purpose. He contended that such research was never shared by the Income Tax Officer (TDS) with the Petitioner and thereby denied to the Petitioner opportunity of fair hearing. Had he brought such material to the notice of the Petitioner, the Petitioner would have been in a position to meet with the same and put forth its own explanation. Our attention was also drawn to the two Affidavits in Reply filed by the Income Tax Officer (TDS) specifically meeting with the Petitioner's contention of breach of principles of natural justice. It has contended that nowhere through these replies also, it comes out that such material exparte collected by the Income Tax Officer (TDS) was ever put to the Petitioner before the final orders were passed. 7. On the other hand, Counsel for the Department submitted that the Income Tax Officer had given ample opportunity to the Petitioner. The proceedings had gone on for a long time. The Petitioner ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion companies like Epsilon, Datalogix, Acxiom and BlueKat with information they have about you. Through things like store loyalty cards, mailing lists, public records information, and browser cookies, these companies already collect information about you. For example, if you buy a bunch of frozen pizza at a grocery store, and use your loyalty card to get a discount, that information is cataloged and saved by a company like Acxiom. * Basically it comes down to this : your online and offline activity combined determines what kind of ads you'll see. Of course, a lot of complex math and algorithms are in place to actually produce this data, but much of it comes down to how much information you are making public - whether you're aware of it or not - that makes the system work. In theory, it does this to make targeted ads more relevant and specific to you. * Facebook does break their targeting categories out into subcategories including Damographics, Interests and Behaviors. * Damographics are used to reach people based on things such as education, employment, household, financial income, language and lifestyle. To take a look at how specific the targeting can get, let' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mobile Device User : What brand of mobile device do they use ? Are they smartphone or tablet owners ? * Purchase Behavior : Do they use coupons ? Do they shop from department stores or luxury stores ? The kinds of products they heavily buy : clothing, toys, house goods ? * Residential Profiles : How long have they lived in their home ? Are they likely to move ? Have they recently borrowed money to purchase a home ? Are they renters ? How does Google Ads work ? Google Ads displays your ad to potential leads or customers who are interested in your product or service. Advertisers bid on search terms, or keywords, and the winners of that bid are placed at the top of search results pages, on YouTube videos, or on relevant websites, depending on the type of ad campaign selected. Many factors impact your ability to create effective and high-performing Google Ads. Let's cover them below. * AdRank and Quality Score * AdRank determines the placement of your ads, and Quality Score is one of the two factors (the other being bid amount) that determines your AdRank. Remember, your Quality Score is based on the quality and relevance of your ad, and Google measures that by how many ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t performers to display to users. With traditional ads, create one static version of your ad, using the same headline and description each time. Responsive ads allow for a dynamic ad that is auto-tested until you arrive at the version that is best suited for your target audience - for Google, that means until you get the most clicks. * Display Ads Google has a network of websites in various industries and with an array of audiences that opt in to display Google Ads. known as the Google Display Network. The benefit to the website owner is that they're paid per click or impression on the ads. The benefit to advertisers is that they can get their content in front of audiences that are aligned with their personas. These are typically image ads that draw users attention away from the content on the webpage Additional options for Display Ads include shopping campaigns and app campaigns, which are displayed on search engine results pages. * Video Ads Video ads are displayed before or after (and sometimes in the middle of) YouTube videos. Remember, YouTube is a search engine, too. The right keywords will place you in front of a video, disrupting the user's behavior just eno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... just starting out and don't know exactly how your persona will be searching, move from a broad match to a more narrow approach so you can test which queries yield the best results. However, since your ad will be ranking for many queries (some unrelated) you should keep a close eye on your ads and modify them as you can gain new information. * Headline and Description Your ad copy can be the difference between a click on your ad and a click on your competitor's ad. It's important that your ad copy matches the searcher's intent, is aligned with your target keywords, and addresses the personas pain point with a clear solution. To illustrate what we mean, let's review as example. The Swim Revolution / Baby Swimming Lessons - Headline Ad www.theswimrevolution.com/ Skills are Taught Using Fun Games Designed to Foster Confidence & Comfort in the Water. Little to ... Description Swimming Levels Our Fantastic Facilities - FAQ Our Client's Own Words A search for "baby swim lessons" yielded this result. The copy is concise and uses the limited space wisely to convey their message and connect with their target audience. The Swim Revolution knew to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbership * Location Extensions include your location and phone number within your ad so Google can offer searchers a map to easily find you. This option is great for businesses with a storefront and it works well for the search query "... near me." Shop at CVS Pharmacy Online - & Earn Pharmacy Rewards Today Ad www.cvs.com/Pharmacy/Rewards ***** Rating for cvs.com 4.2 On-time delivery 94% + Get Extra Bucks Rewards by Shopping at CVS Pharmacy Online. Start Saving Today! 1 Coca-Cola Plaza Nw Nat, Atlant, GA - Open today 7:00 AM - 6:00 PM Offer Extensions work if you're running a current promotion. It can entice users to click your ad over others if they see that your options are discounted compared to your competitions. $19.99 Same Day Flowers / Delivery in 4 Hours or Less Ad www.fromyouflowers.com/ ***** Rating for fromyouflowers.com : 4.5 - 86,772 reviews - Email reply time : 3 hours Hand Delivery in 4 Hours - 20 % Off All Items - "Best Value Flowers" - CBS News! Satisfaction Guarantee. $ 19.99 Same Day Delivery Types : Birthday, Sympathy, Romance, Get Well. Value Arrangement : from $ 19.99 - Florist Designed Bouquet More * App Extensions provide a link ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmarized my conclusion in paragraph 4.4 of the order dated 31.05.2019 as under : "4.4 In view of the above, it can be seen that web portals like google, Facebook, yahoo and like others available in the current market provides series of services to the advertising agencies which are purely in the nature of technical services. The web portals are giving specific services which are based on digital behaviour of the clients by placing appropriate ads when targeted group is indulging in web search. Various parameters like country, age, location, gender, preferences etc. are applied for satisfying the needs of the advertiser company for targeted advertising which is highly technical in nature." In paragraph 5, of the order, I have given a long list of the parties to whom such payments have been made. 9. I respectfully submit that I have done substantial research into the subject of advertising on on-line platform and elaborately discussed the system in my order and come to the conclusion that the payment is made for technical services. I have given detailed reasons for my conclusion. It is not a summary order but a speaking order. The subject has to be examined in detail in the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e material, which is attributable to his own research, never put such material to the Petitioner for its comments and most importantly his entire orders are founded on such research material. 15. We do not grudge, the Income Tax Officer (TDS) carrying out such research, devoting time and energy in doing so nor do he find anything objectionable about his final order based on such information which he may from reliable and legitimate sources collect. Nevertheless, none of this would be permissible without following the principles of natural justice. The least that he was expected to do was to share such material with the Petitioner giving an opportunity to rebut the same if so desired by the Petitioner. By suggesting that the Petitioner is already engaged in the same business and therefore would be aware about intrinsic nature services rendered, is begging the question. In plain terms, the impugned orders cannot survive the test of following principles of natural justice. In the result, the orders are quashed only on this ground. Since the declaration of non deduction on payments, which according to the Petitioner had not accrued is in any case small element of the entire amount, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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