TMI Blog2019 (2) TMI 2055X X X X Extracts X X X X X X X X Extracts X X X X ..... deductible @ 10% on the payments to be made - HELD THAT:- As per decision of Google India (P)Ltd. [ 2018 (5) TMI 896 - ITAT BANGALORE] wherein after referring the Tribunal decisions in the cases of Right Florist P.Ltd., [ 2013 (4) TMI 338 - ITAT KOLKATA] and Pinstorm Technologies P.Ltd. [ 2012 (12) TMI 601 - ITAT MUMBAI ] Yahoo India (P) Ltd., etc. [ 2011 (6) TMI 162 - ITAT, MUMBAI ] it is held in para 116 that In all these cases, the assessee was either an advertiser or act on behalf of some other advertiser and has purchased space from the owner of search engine to display its advertisements online. Therefore, the payment made by the assessee to the owner of the search engine was considered to be business receipt/business profit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ireland Ltd., a non-resident, for making advertisement in their social portal for the assessee s client M/s.Cholamandalam General Insurance Company Ltd. The AO held that face book is social networking site, placing advertisements in the social networking sites are patented and provide valuable services, which are essentially technical in nature, receiving such kind of expertise and knowledge from Face Book, Ireland is nothing but technical services rendered by Face Book which clearly attracts the provisions of section 195 and hence tax is deductible @ 10% on the payments to be made at ₹3,60,813/-. Aggrieved, the assessee filed appeal before the CIT(A). The Ld. CIT(A) dismissed the appeal. Aggrieved against that order, the assessee fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion) Range-1,Bengaluru, reported in (2018) 93 taxmann.com 193 (Bangalore Trib.) / (2018) 194 TTJ 385 (Bangalore Trib) dated 11.05.2018, wherein after referring the Tribunal decisions in the cases of Right Florist P.Ltd., dated 12.04.2013 (2013) 32 taxmann.com 99(kolatta-Trib) (2013) 25 ITR(T) 639 (Kollatta-Trib) (2013) 143 ITD 445(Kolkatta-Trib) and Pinstorm Technologies P.Ltd, Yahoo India (P) Ltd., etc, it is held in para 116 that In all these cases, the assessee was either an advertiser or act on behalf of some other advertiser and has purchased space from the owner of search engine to display its advertisements online. Therefore, the payment made by the assessee to the owner of the search engine was considered to be business receipt/b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties AO thus disallowed said payments. It was noted that foreign entities did not have PE in India. Further revenue failed to prove that assessee had received any technical services within the meaning of section 9(1)(vi) or section 9(1)(vii) . whether on facts, payments were not chargeable to tax in India u/s.9(1)(vii) r.w.s. 195 and thus impugned disallowance was to be deleted. Held, Yes (para 5) (in favour of the assessee). Per contra, the Ld. DR relied on the decisions of the lower authorities. 4. We heard the rival submissions, gone through the relevant material and find merit in the submissions made by the Ld.AR., supra. The assessee is engaged in the business of posting advertisement in the social portal on behalf of their c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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