The Income Tax Appellate Tribunal (ITAT) issued its decision on 12 April 2013 in the case of ITO v. Right Florists Pvt. Ltd. (ITA No. 1336/Kol./2011) that the payments for online advertisement on search websites companies based in Ireland and the United States (US) are not subject to taxation under the Income Tax Act 1961 (ITA) or under the relevant tax treaties, i.e. India - Ireland Income Tax Treaty (2000) (as amended through 2001) or India - United States Income Tax Treaty (1989) (relevant Tax Treaty). It further held that neither company based in Ireland or the US constituted a...