Case Law Details
CIT Vs Travelport Global Distribution Systems B.V. (Delhi High Court)
The Delhi High Court recently ruled on the appeal, ITA 748/2023, filed by the appellant/revenue concerning Assessment Year (AY) 2015-16 against the order passed by the Income Tax Appellate Tribunal (Tribunal) on 27.09.2022.
Delay Condoned for Meritorious Consideration: In the application filed by the appellant/revenue, a delay of 220 days in re-filing the appeal was acknowledged. The court, emphasizing its intention to decide the appeal on merits, inclined to condone the delay, leading to the disposal of the application accordingly.
Supreme Court Precedent Holds Sway: Mr. Ruchir Bhatia, the learned senior standing counsel for the appellant/revenue, conceded that the merits of the case were significantly influenced by the Supreme Court’s decision in the case of Commissioner of Income-tax (International Taxation) v. Travelport L.P. USA, [2023] 153 taxmann.com 176 (SC). The Supreme Court’s order referred to a judgment of the Delhi High Court and affirmed the decision against the Revenue in the case of DIT v. Travelport Inc. [2023] 149 taxmann.com 470/454 ITR 289 (SC).
Merit of the Appeal and Attribution Rate: The core issue in the appeal revolved around the sustainability of the Dispute Resolution Panel’s view that 75 percent of gross profits earned from Indian operations, attributed to the respondent/assessee, was justifiable. The Tribunal, in alignment with its own decision for AYs 2007-08 to 2014-15, directed the Assessing Officer to adopt an attribution rate of revenue for the Indian operations of the Permanent Establishment at 15 percent of gross booking fees for AY 2015-16.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
