TDS on advertisement expenses paid to Facebook, Tapjoy etc. -ITAT Restores matter to AO

Moonfrog Labs Pvt. Ltd. Vs ACIT (ITAT Bangalore) The Ld.CIT(A) held that the advertisement expenses paid to Facebook and other entities constitutes use of industrial, commercial or scientific equipment under section 9(1)(vi) of the Act whether active or passive and hence ‘Royalty’ under the Act. As regards taxability as ‘“Fees for technical services’, it was held by the Ld.CIT(A) that since the process is automated and there is no human intervention, the payments do not qualify as Fees for technical services under section 9(1)(vii) of the Act. The Ld.AR submitted that the ass...