Assessee, a US based company, provided online airlines booking services through a computerized reservation system (CRS). Assessing Officer held that assessee had a PE in India and held that entire income generated in India would be taxable in India. Tribunal following previous judgments of High Court in case of DIT v. Galileo International Inc. (2009) 180 Taxman 35/ (2011)) 336 ITR 264 (Delhi) (HC) held that only 15 per cent of income was to be attributed to assessee’s Indian operations. On appeal by Revenue High Court held that since the Assessing Officer had based his conclusions and determined income based upon figures furnished by assessee, Tribunal ought not to have disturbed said order. Order of the Tribunal is reversed.
PCIT v. Travelport L.P. USA (2023) 154 taxmann.com 95 (Delhi)(HC) Editorial : Order of High Court is reversed, Travelport L.P. USA v. CIT(IT) (2023) 295 Taxman 6 (SC)
S. 9(1)(i) : Income deemed to accrue or arise in India-Business connection-Permanent Establishment-Fixed PE, place of business-Online booking services-15% of income is attributable to Indian operations-Order of Tribunal is reversed-DTAA-India-USA. [S. 260A, Art. 5, 7.]