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TMI Blog2024 (11) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... S and consequently it cannot be brought to tax in the hands of the assessee. The relevant portion of the order is extracted in the order of the CIT(Appeals), hence we are not reproducing the same again. We hold that the payments made by GIL and other Indian customers to the assessee cannot be taxed in the hands of the assessee and find no infirmity in the order of the ld. CIT(Appeals). The grounds by the revenue in this regard are dismissed. - Shri Laxmi Prasad Sahu, Accountant Member And Shri Kesav Dubey, Judicial Member For the Appellant : Ms. Priya Tandon, Ms. Nandita Phal Shri Anmol Anand, Advocates. For the Respondent : Shri Sridhar E., CIT(DR)(ITAT), Bengaluru ORDER PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER This appeal by the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout appreciating the fact that in the case of the assessee, the issue of software or the customization thereof is not the primary issue but is indeed regarding the revenue earned through advertising space on the website of the assessee? 2. The brief facts of the case are that the assessee, Google Ireland Limited (GIL) is a foreign company having its registered office at Ireland. The assessee is involved in the business of sale of online advertisement space to Google India Pvt. Ltd. (GIPL) under the amended Google Adwords Program Distribution Agreement dated 12.12.2005 and to direct advertisers. 3. The AO noted that the assessee has given the marketing distribution rights of Adwords program to GIPL without holding the tax at source u/s. 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon ble High Court of Karnataka and remanded to the Tribunal. After the remand from High Court, the Tribunal vide its order dated 19.10.2022 in IT(TP)A Nos.1513 to 1516/Bang/2013 for AYs 2009-10 to 2012-13 decided the issue of sale of online advertising space is not liable to be taxed in India both under the Income-tax Act and DTAA. This order was followed by the coordinate Bench of the Tribunal in the case of GIPL (payer) for AYs 2013-14 to 2016-17 in IT(IT)A No.1190/Bang /2014 and connected appeals vide order dated 15.12.2022. However, the AO noted that department is in process of filing further appeal in the said cases. It was held by the AO that in view of the departmental stand and the interest of the revenue, reassessment proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02.2023 in para 8 to 11 of the order and it was held that the payment made by the payer (GIPL) to the assessee (GIL) is not in the nature of royalty or FTS and consequently it cannot be brought to tax in the hands of the assessee. The relevant portion of the order is extracted in the order of the ld. CIT(Appeals), hence we are not reproducing the same again. 9. Following the above orders of the Tribunal, we hold that the payments made by GIL and other Indian customers to the assessee cannot be taxed in the hands of the assessee and find no infirmity in the order of the ld. CIT(Appeals). The grounds by the revenue in this regard are dismissed. 10. In the result, the appeal of the revenue is dismissed. Pronounced in the open court on this 21s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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