Madras HC: Repeated Remand Orders U/S 37 A&C Act are Unworkable Without Reversing Merits  ||  Delhi High Court: Unproven Immoral Conduct of a Parent Cannot Influence Child Custody Decisions  ||  Delhi High Court: Counsel Cannot Treat Passovers or Adjournments as an Automatic Right  ||  Delhi HC: Landlord’s Rent Control Act Rights Cannot be Waived by Contract With Tenant  ||  Bom HC: Arbitrator Who Halts Proceedings over Unpaid Revised Fees Effectively Withdraws From Office  ||  SC Holds That if Some Offences Are Quashed On Compromise, The FIR Cannot Continue For Others  ||  SC Holds That Prior Opportunity to See Accused Can Render Test Identification Proceeding Unreliable  ||  Allahabad HC: Employees of Constituent Institutions are not Entitled to Central University Benefits  ||  Calcutta High Court: Juvenile Accused Eligible to Apply for Anticipatory Bail under Section 438 CrPC  ||  J&K & L HC: Departmental Proceedings Not Halted by Pending Criminal Case Without Showing Prejudice    

Matrimony.com Limited. vs. The ACIT / DCIT / ITO - (Income Tax Appellate Tribunal) (20 Apr 2022)

TDS not liable to be deducted on Advertisement Expenses paid to Online Platforms

MANU/IX/0274/2022

Direct Taxation

The assessee company is engaged in the business of providing services in connection with marriage alliance and related services. The company markets its product both through online and offline advertisements. During the relevant financial year, the company has availed the services of Facebook, Ireland Ltd., for advertisement in order to promote the business of matrimony and incurred advertisement cost. The AO during the course of assessment proceedings, on examination of financials noted that the assessee has not deducted TDS towards advertisement charges paid to Facebook, Ireland Ltd., according to the provisions of Section 195I of Income Tax Act, 1961 and hence, applying the provisions of section 40(a)(i) of the Act, disallowed the advertisement charges paid to Facebook.

Being Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) relying on the case law of Google India Pvt. Ltd., of ITAT, Bangalore confirmed the disallowance. Aggrieved, now assessee is in second appeal before the Tribunal.

The Court observed that ITAT, Bangalore in the case of Urban Ladder Home Décor Solutions Pvt. Ltd., considered the decision of Hon’ble Supreme Court in the case of Engineering Analysis Centre of Excellence Pvt. Ltd., vs. CIT wherein the Hon’ble Supreme Court exactly on same facts held that there is no requirement to deduct tax at source from the advertisement payments made for using the information technology facility u/s.195 of the Act. Thus, as the facts of the present case are exactly same with the one of Urban Ladder, the advertisement charges liable to be allowed as deduction.

Tags : ADVERTISEMENT CHARGES   TDS  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved