DDIT, New Delhi vs M/s. Worldspan L.P. USA, New Delhi

The Income Tax Appellate Tribunal (ITAT) in Delhi has reconsidered appeals by the Revenue concerning the tax years 2006-07 to 2010-11. The Delhi High Court had previously remitted the cases back to the Tribunal for specific findings on attributing 15% of revenue to the assessee's Permanent Establishment (PE) in India. The assessee, a US-based limited partnership, provides global distribution system services for the travel industry.

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘D’ BENCH,
NEW DELHI [THROUGH VIDEO CONFERENCE]

BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
SHRI K. N CHARY, JUDICIAL MEMBER

ITA No. 6499/DEL/2012 [A.Y 2006-07]
ITA No. 6500/DEL/2012 [A.Y 2007-08]
ITA No. 1480/DEL/2012[A.Y 2008-09]
ITA No. 217/DEL/2014 [A.Y 2009-10]
ITA No. 218/DEL/2014 [A.Y 2010-11]

The Dy D.I.T
Circle 2(2) New Delhi  
[Appellant] 

Vs.

M/s Travelport L.P. USA
C/o Price Water House Coopers Pvt Ltd
Sucheta Bhawan, Gate No. 2, 1st Floor
11-A, Vishnu Digamber Marg, New Delhi
PAN: AAAFW 8525 C
[Respondent]

Assessee by : Shri Kanchan Kaushal, FCA,
ShriRishab Malhotra, Adv
Revenue by : Shri Satpal Gulati, CIT-DR
Date of Hearing : 02.11.2020
Date of Pronouncement : 09.11.2020

ORDER

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

The above captioned appeals are by the Revenue for A.Ys 2006-07to 2010-11. This bunch of appeals were remitted back by the Hon'ble High Court of Delhi directing the Tribunal for recording specific findings on the issue of attribution of 15% Revenue to the PE in India.

2. Facts on which the Hon'ble High Court of Delhi remitted the matter back to the Tribunal are as under:

3. The assessee is a limited partnership in the State of Delaware,USA and is a tax resident of USA. The assessee is engaged in the business of providing information, reservations, transaction processing and related services for airlines, travel agencies and other travelrelated entities. It owns and operates a Global Distribution System located outside India, referred to as Computerized Reservation System (CRS) and provides subscribers with access to and use of this CRS. The assessee earns its revenue through participating in carrier agreements with airlines for which the bookings are made through the CRS.

4. The assessee entered into an agreement with Travelport Services Limited (TSL,) a limited company existing under the laws of England and which is a 100% subsidiary of the assessee to market the CRS and other services of TLP in the United Kingdom, Europe, the Middle East,Africa, and parts of Asia.

To know more in details find the attachmennt file