The assessee, a US based company, entered into Participating Carrier Distribution and services agreements with various airlines etc. for facilitating booking of airline tickets and providing related services through computer reservation system (CRS). It had earned booking fees from various participating Airlines for such services. It had also entered into the subscriber agreements with global travel agencies in India who had presence/affiliates in multiple countries including India and had granted them access to assessee’s CRS. The AO following order for AYs 1999-2000 and 2004-05 in case of assessee had held that entire income earned by assessee out of India was taxable on ground that assessee had fixed place PE and DAPE and assessee had a business connection in India under section 9(1), without considering the submission of the assessee that after 2005 there was a change in business model. The ITAT held that the assessee had no office or employee in India and assessee was not responsible for providing any computer, printers, communication lines etc. to travel agents in India. The AO/DRP had failed to examine participating carrier distribution and services agreements or service provider agreement with travel agents and had failed in discharging burden to establish existence of a PE. It was further held that since there was no entity which was habitually procuring contracts for assessee or bind assessee for contracts to be entered by that entity independently, thus, there was no Agency PE of assessee in India.(AY. 2012-13 to 2016-17)