https://www.taxtmi.com/caselaws?id=775959 The ITAT Delhi held that payments made by the appellant to its AEs for online advertisements on third-party platforms, deemed as Fees for Technical Services, did not warrant penalty under section 271(1)(c) or TDS under section 195. The tribunal noted no penal action was previously taken under TDS provisions, nor were the amounts taxed in the AE's jurisdiction. The introduction of the Equalization Levy under the Finance Act, 2016, indicated such transactions are not taxable under the Income Tax Act or relevant DTAA. The tribunal found the addition arose from a genuine difference of opinion rather than concealment or misreporting. The CIT(A)'s partial allowance of transactions further supported this view. Accordingly, the penalty was set aside and the appeal allowed. en-us Thu, 31 Jul 2025 00:00:00 +0530 Sat, 02 Aug 2025 07:24:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775959 The ITAT Delhi held that payments made by the appellant to its AEs for online advertisements on third-party platforms, deemed as Fees for Technical Services, did not warrant penalty under section 271(1)(c) or TDS under section 195. The tribunal noted no penal action was previously taken under TDS provisions, nor were the amounts taxed in the AE's jurisdiction. The introduction of the Equalization Levy under the Finance Act, 2016, indicated such transactions are not taxable under the Income Tax Act or relevant DTAA. The tribunal found the addition arose from a genuine difference of opinion rather than concealment or misreporting. The CIT(A)'s partial allowance of transactions further supported this view. Accordingly, the penalty was set aside and the appeal allowed. Case-Laws Income Tax Thu, 31 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775959