Assessee made payments as reseller fee to Amazon Web Services   (AWS)  USA for purchase of web services and claimed that reseller fees paid by it was not chargeable to tax as AWS USA did not have any permanent establishment in India. The assessee made an application under section. 195(2) of the Act. The  Assessing Officer held that AWS USA had significant infrastructural assets (data centres) in India, which constituted its PE.  The Assessing Officer proceeded on the information as available in the public domain and concluded that AWS USA had significant infrastructural assets (data centres) in India, which constituted its PE. Accordingly, the Assessing Officer held that the reseller fees paid by AWS India to AWS USA would fall outside the scope of equalisation levy and would be chargeable as business income under the provisions of the Act. He estimated 40 per cent of the reseller fess paid by AWS India to AWS USA as profit margin of AWS USA. The Assessing Officer directed AWS India to withhold 16 per cent of the remittance on account of reseller fee paid to AWS USA. On Writ the Court held that  since Assessing Officer had decided assessee’s application based on information in public domain and on basis of certain assumptions which were ex facie erroneous, it would be apt that assessee would withhold 8 per cent of payments to AWS USA, for period in question and deposit same with revenue authorities.