GOOGLE IRELAND LIMITED,IRELAND vs. DCIT (IT), JCIT(OSD) (IT) - CIRCLE 1(1), BENGALURU

ITA 191/BANG/2024Status: DisposedITAT Bangalore26 March 2024AY 2013-14Bench: SHRI GEORGE GEORGE K. (Vice President), SHRI LAXMI PRASAD SAHU (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that payments received by GIL from GIPL for online advertisement space are not in the nature of royalty under the Act and the India-Ireland DTAA. Therefore, such income cannot be taxed in India in the hands of GIL unless it has a Permanent Establishment (PE) in India.

What were the facts?

Google Ireland Ltd. (GIL) sold online advertisement space to Google India Pvt. Ltd. (GIPL) and direct advertisers, but did not file returns in India believing the income was not taxable. The Assessing Officer (AO) reopened assessments based on previous rulings that such payments were royalty.

What were the issues?

The primary issue was whether payments received by a foreign company for online advertisement space constituted royalty income taxable in India. This involved interpreting the Income-tax Act and the India-Ireland Double Taxation Avoidance Agreement (DTAA).

Which sections of the Income-tax Act were involved?

Section 9(1)(vi),Section 143(3),Section 147,Section 148,Section 195,Section 201,Section 201(1A)

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Income Tax Appellate Tribunal, “A” BENCH : BANGALORE

Before: SHRI GEORGE GEORGE K. & SHRI LAXMI PRASAD SAHU

For Appellant: Shri Deepak Chopra, Ms. Priya Tandon, Shri
For Respondent: Shri D.K. Mishra, CIT(DR)(ITAT), Bengaluru
Hearing: 21.03.2024Pronounced: 26.03.2024

Per Bench These appeals at the instance of the assessee are directed against the final assessment orders passed separately u/s. 143(3) r.w.s. 147, 92CA and 144C(13) dated 18.01.2024 for AYs 2013-14 &2014- 15 and 25.1.2024 for AYs 2015-16 & 2016-17 respectively. The issue

IT(IT)A Nos.191 to 194/Bang/2024 involved in all these appeals is common and hence they are heard together and disposed of by this consolidated order.

2.

The brief facts of the case are that the assessee, Goo

The order continues below.

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