DCIT, CC 62, MUMBAI, MUMBAI vs. INTERACTIVE AVENUES PVT. LTD, MUMBAI

PER NARENDRA KUMAR BILLAIYA, AM:

This appeal by the revenue is preferred against the order of the ld. CIT(A)-54, Mumbai, dt. 04/12/2023, pertaining to AY 2016-17. 2. The substantive grievance reads as under:- "(i) Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A) is justified in deleting the disallowance made u/s 40(a)i) by holding that the payment made for display of banner advertisement was not in the nature of royalty but the same was in the nature of business profit and in the absence of any PE of Facebook Ireland Ltd, in India? (ii) Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A) order can be said as perverse in nature for holding that the assessee is not liable to deduct TDS on payments made to non-residents by relying on the decision of Hon'ble TAT in assessee's own case, wherein the department did not accept the decision of ITAT and filed further appeal which is pending before Hon'ble High Court for adjudication?

(iii) Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A) is right in law allowing appeal of the assessee by holding that there was no obligation on part of assessee to deduct TDS on payments made to non-resident companies without analyzing the facts and materials of the present case with provisions of respective DTAA's ?"