Case Law Details
Google India Private Ltd. Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that distribution fees paid by Google India Private Ltd. (Google India) cannot be treated as DAPE (Dependent Agent Permanent Establishment) of Google Ireland Ltd (Google Ireland). Accordingly, distribution fees paid by Google India to Google Ireland doesn’t attract TDS u/s. 195.
Facts- The case was selected for scrutiny and notice u/s. 143(2) was duly served on the assessee. TPO accepted the international transaction of the assessee with its AE to be at arm’s length. AO made the additions with respect to deduction of telecommunication charges from export turnover for computing deduction u/s. 10A of the Act; allowability of deduction of the amount payable by the assessee towards distribution right of AdWord program; and claim of TDS credit deducted by the Indian advertisers on advertising payment made to the assessee.
Aggrieved, the assessee preferred appeal before the CIT(A). CIT(A) partially allowed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- In our considered view when the assessee has presented the results of the impugned transactions that reflects the substance of the transaction we see no reason for the AO not to be satisfied with the correctness or completeness of the books of accounts of the assessee.
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