INCOME TAX OFFICER-11(2)(1), MUMBAI, MARINE LINES vs. STOUGHTON STREET TECH LABS PRIVATE LIMITED, LOTUS BUSINESS PARK, ANDHERI

ITA 885/MUM/2026Status: DisposedITAT Bangalore15 July 2026AY 2022-2314 pages
AI SummaryDismissed

What were the facts?

The assessee company incurred substantial marketing and advertisement expenses for its online video streaming platform 'Loco'. The Assessing Officer treated a significant portion of this expenditure as capital in nature, while also disallowing expenses for non-deduction of TDS on payments to non-residents.

What did the Tribunal hold?

The Tribunal held that the marketing and advertisement expenditure was revenue in nature, incurred for promoting an existing business. It also held that payments for subscription-based software and cloud services to non-residents did not constitute royalty, thus not requiring TDS deduction.

What were the issues?

Whether marketing and advertisement expenses are capital or revenue expenditure, and whether payments for software/cloud services to non-residents attract TDS obligations.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 35D,Section 40(a)(i),Section 195

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI

Before: SHRI ANIKESH BANERJEE & SHRI BIJAYANANDA PRUSETH

Heard together (2 matters)

ITA 885/MUM/2026
ITA 268/MUM/2026

Read from the judgment's own cause title. This page is filed under one of them.

ITA 885 & 268/MUM/2026 STOUGHTON STREET TECH LABS PRIVATE LIMITED

PER SHRI ANIKESH BANERJEE, JU

The order continues below.

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