2019 (2) TMI 2055

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....rand management, engaged in posting advertisements in the social portal on behalf of their clients. It applied for a NOC for withholding certificate u/s.195(2) in respect of the services to be availed from M/s. Face Book 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 a....

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....missioner of Income Tax (Appeals) may be set aside and the appeal be allowed." 3. The Ld.AR presented the case on the above lines. She invited our attention to the decision of Google India (P)Ltd. Vs. Joint Director of Income-tax (International Taxation) 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 o....

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....ear, assessee made payments to various foreign parties for rendering services such as online advertisement, web page security certifications, maintenance of database of customers etc. assessee did not deduct tax at source while making payments to foreign parties - 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 l....