Assessee, a US based company, provided online airline booking services. The Assessing Officer held that assessee had PE in India and held that entire income generated in India would be taxable in India. Tribunal following previous judgment held that only 15 per cent of income was to be attributed to assessee’s Indian operations. High Court held that since Assessing Officer had based his conclusions upon figures furnished by assessee, Tribunal ought not to have disturbed that order, without a finding. On aappeal the Court heeld that since in assessee’s own case Supreme Court held that Tribunal arrived at quantum of revenue accruing to assessee on basis of functions performed, assets used and risk undertaken (FAR analysis) and commission paid to agents in India was more than amount attributed to operations carried out in India, following the order of Tribunal did not call for interference. Followed Travelport L.P. USA v. CIT(IT) (2023) 149 taxmann.com 470/ 454 ITR 289 (SC)
Travelport L.P. USA v. CIT(IT) (2023) 295 Taxman 6 (SC) Editorial : PCIT v. Travelport L.P. USA (2023) 154 taxmann.com 95 (Delhi)(HC), reversed.
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 affirmed-Order of High Court reversed-DTAA-India-USA. [Art. 5, 7, Art. 136]