SC: Confirmation of an Auction Sale Does Not Bar Judicial Scrutiny of Reserve Price Valuation  ||  Supreme Court Sets Aside Conviction of Four Men in a 1998 Gang Rape Case  ||  Supreme Court: Privy Purse Privileges of Princely Rulers are Not Enforceable Legal Rights  ||  Delhi HC: Repeated Court Summons May Distress and Re-Traumatize Child Sexual Assault Victims  ||  Jammu and Kashmir High Court: Labeling Someone as a Terrorist Associate Amounts to Defamation  ||  Delhi HC: Setting Aside or Altering a Judge’s Order by a Higher Court Doesn’t Affect Their Integrity  ||  Delhi High Court: Accused Cannot be Faulted For Smart Replies; Interrogator Must be Sharper  ||  Supreme Court: Belated Jurisdictional Challenge Impermissible After Participation in Arbitration  ||  Supreme Court: Failure to Prove Specific Overt Acts of Each Unlawful Assembly Member Not Fatal  ||  Supreme Court: Parental Salary Alone Cannot Determine OBC Creamy Layer Status    

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 2026 - All Rights Reserved