Booking.com B.V. Vs ACIT (ITAT Delhi)
Booking.com platform earning of commission income is not taxable in India since AO has failed to discharge the onus of establishing assessee having fixed place PE in India. Accordingly, final assessment order is liable to be set aside.
Facts- Assessee, Booking.Com B.V., didn’t file return of income. The case of the assessee was picked by risk management strategy of insight for non-filing of income tax return. On completion of proceedings, ld. AO vide order dated 15.01.2025 made addition of Rs.3,96,09,81,782/- being commission income earned. Being aggrieved, the present appeal is filed.
Conclusion- AO failed to discharge the onus of establishing assessee having fixed place PE in India and to attribute the earning of commission income to such alleged fixed placed PE in India. Hon’ble Supreme Court of India in the case of Formula One World Championship Limited Vs. CIT 394 ITR 80 (SC) has held for constituting fixed place PE (in India) the foreign enterprise must have (i) identified fixed place in India and ii) such fixed place must be at the disposal of the foreign enterprise and (iii) core business activities of the foreign enterprise must be carried out through such fixed place
