2025 (5) TMI 883

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..... e appeal in ITA No.2744/Del/2022 for AY 2018-19, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as "ld. NFAC", in short] in Appeal No. ITBA/NFAC/S/250/2022- 23/1046026049(1) dated 27.09.2022 against the order of assessment passed u/s 143(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") dated 08.02.2020 by the Assessing Off .....

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..... ort. The assessee before the ld NFAC contended that this disallowance is not warranted at all as the assessee has not paid any consideration to non-resident for any specified services on which equalization levy is applicable under the provisions of Chapter VIII of the Finance Act, 2016. The assessee submitted that as per Chapter VIII Finance Act, 2016, the expressions "Equalisation levy" and "Spec .....

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..... esident from- (i) a person resident in India and carrying on business or profession, or (ii) a non-resident having a permanent establishment in India. (2) The equalisation levy under sub-section (1) shall not be charged, where- (a) the non-resident providing the specified service has a permanent establishment in India and specified service is effectively connected with such permanent estab .....

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..... assessee pleaded that on bare perusal of the audited financial statements, it clearly reveals that assessee has not paid any consideration to a non resident for any advertisement or any other services on which equalization levy is deductible. Further, it was pleaded that from the profit and loss account enclosed along with return, the assessee has not paid or incurred any advertisement expenditur .....

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..... the ld NFAC. The ld NFAC is directed to considered all those submissions together with documentary evidences, if any, and pass an order de novo in accordance with law qua the issue of disallowance u/s 40(a)(ib) of the Act. The assessee is permitted to file fresh evidences, if any, in support of its contentions. All the evidences submitted by the assessee shall have to be admitted by the ld NFAC a .....

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