Assessee companyis in business of dealing in home decor products, had made Payments to non-resident companies towards advertisement charges.  Assessing Officer held that assessee had failed to deduct tax at source on said payments and, thus, assessee was held to be an assessee-in-default as per provisions of section 201(1) for non deduction of tax at source. On appeal the Tribunal held that   recipients of payments Le, Facebook and Rocket Science Group only allowed assessee to use their facilities for purpose to use their advertisement contents Payment to Amazon Web Ser vices was only for using information technology facilities provided by it, that too billing would depend upon extent of usage of those facilities Facilities provided by non-resident companies were only enabling facilities which resident helped assessee lo place its advertisement contents on their platform effectively-In case of Amaz4%, payment was in nature of rent payments for use of infrastructure facilities. Payments made by assessee to non-resident companies could not be considered as ‘royalty payments’ and, hence, they did not give rise to any income chargeable in India  There was no requirement to deduct tax at source from those payments under section 195 and, hence, assesses could not be considered as an assessee-in-default under section 201(1). Tribunal also held that  consideration paid by assessee for purchase of software, clond computing, cloud space hiring involving transfer of right to use software was not royalty and, thus, there was no requirement to deduct tax at source from those payments under section 195. Order of Tribunal affirmed by High Court.  (AY. 2015-16 to 2017-18)