ACIT-13(1)(2), MUMBAI vs. M/S PLAY GAMES 24X7 PVT LTD, MUMBAI

The Revenue by filing the present appeal, sought to set aside the impugned order dated 12.09.2022 passed by the National Faceless Appeal Centre(NFAC) [Commissioner of Income Tax (Appeals), Delhi] (hereinafter referred to as CIT(A)] qua the assessment year 2014-15 on the grounds inter-alia that :- “1. On the facts and in the circumstances of the case, the Ld. CIT (A) is erred in deleting the disallowance of Rs.186,24,21,180/- made on account of payments made towards winning to players without appreciating the fact that that the assessee do not demonstrate the accounting of compliance of TDS of the winning payments vis-à-vis section 194B compliance. 2. On the facts and in the circumstances of the case, the Ld. CIT (A) is erred in deleting the disallowance of Rs.1,52,06,437/- made on account of non compliance of TDS on online promotional games and Chapter XVIIB of the Act without appreciating the fact that that the assessee do not demonstrate the accounting of compliance of TDS on online promotional games vis-à-vis section 194B compliance. 3. On the facts and in the circumstances of the case, the La CIT (A) is erred in deleting the disallowance of Rs.5,57,68,688/- made on account of Advertisement Expenses paid to Facebook Ireland without appreciating the fact that the said expenditure was liable to be disallowed u/s 40(a) of the IT Act since the same falls under the definition of "Royalty" and subject to TDS u/s 195 and the assessee has not deducted TDS on the same as per Explanation 2 below clause (vi) of sub section (1) of section 9 of Income Tax Act, 1961. 4. The appellant prays that the order of the Ld.CIT(A) be set aside and the order of the AO be restored. 5. The appellant craves leave to amend or alter any ground or add any other grounds which may be necessary.”

Briefly stated facts necessary for consideration and adjudication of the issues at hand are : original assessment by the assessee was processed under section 143 (3) of the Income Tax

The Assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has dismissed the appeal filed by the Assessee. Feeling aggrieved with the impugned order passed by the Ld. CIT(A) the Revenue has come up before the Tribunal by way of filing present appeal.

We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto.

At the very outside it is brought to the notice of the Bench by the Ld. A.R. for the assessee that since order passed by the Ld. PCIT under section 263 read with section 143(3) of the Act has been set aside and issues have been remitted back to the Ld. PCIT for fresh adjudication, assessment framed thereafter under section 143 (3) of the Act read with section 263 of the Act and subsequent appeal before the Ld. CIT(A) has become infructuous and placed on record copy of order passed by the coordinate Bench of the Tribunal in case of assessee in ITA No.3830/M/2019 for

In the backdrop of the aforesaid undisputed facts, we are of the considered view that when the order passed under section 263 by Ld. PCIT has since been set aside by the coordinate Bench of the Tribunal vide order (supra) subsequent assessment made under section 143(3) read with section 263 by the AO and further appeal against the same before the Ld. CIT(A) has become infructuous. So finding no scope for interference in the impugned order passed by the Ld. CIT(A) present appeal filed by the Revenue is hereby dismissed.