Sale of cruise tickets through the services of an Indian entity on principal to principal basis and at an arms length prices would not be liable to tax in India

Mumbai Income Tax Appellate Tribunal (the Tribunal) in the case of DDIT Vs. Star Cruises (India) Travels Services Pvt. Ltd. [2010-TIOL-04-ITAT-MUM] has held that merely booking of different cruise tour packages for M/s. Star Cruises Management Ltd. (M/s. SMCL) foreign company by the taxpayer cannot per se be decisive for holding that M/s. SMCL is having ‘business connection’ in India within the meaning of section 9(1)(i) of the Income-tax Act, 1961 (the Act). Accordingly, it cannot be said that income has been accrued to M/s. SMCL in India in respect of the booking of tour packages of Cru...