Dismissing the SLP of the Revenue the Court held that Information, reservations, transaction processing and related services to airlines, travel agencies and other travel related entities by utilizing a CRS-Major part of business activities took place in USA. Tribunal is justified in holding that 15 per cent of assessee’s profit was to be attributed to India. Oder of High Court affirmed. Followed, DIT v Travelport L.P. USA (2023) 454 ITR 2899 / 149 taxmann.com 470 (SC). (AY. 2006-07)
CIT (IT) v. Travelport L.P. USA (2023) 294 Taxman 165 (SC) Editorial : CIT (IT) v. Travelport L.P. USA (2023) 153 taxmann.com 175 (Delhi)(HC)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Information, reservations, transaction processing and related services to airlines, travel agencies and other travel related entities by utilizing a CRS-Major part of business activities took place in USA-Tribunal is justified in holding that 15 per cent of assessee’s profit was to be attributed to India-DTAA-India-USA. [Art. 5(4)(a)]