The Commissioner Of Income Tax - ... vs Western Union Financial Services Inc

ik-107796732 Delhi High Court 18 December 2024 • 107 min read

Judges (2)

Ravinder Dudeja Coram Yashwant Varma Delivered

Counsel (8)

Ajay Vohra Counsel Respondent Anant Mann Counsel Appellant Aseem Chawla Counsel Appellant Gaurav Jain Counsel Respondent Pratishtha Counsel Appellant Ruchir Bhatia Counsel Appellant Shalini Counsel Respondent Shubham Gupta Counsel Respondent

Parties (3)

Commissioner of Income Tax Appellant Director of Income Tax Appellant Western Union Financial Services Inc Respondent

Case Significance

The Commissioner Of Income Tax - ... vs Western Union Financial Services Inc is a Delhi High Court decision dated December 18, 2024 (citation: ik-107796732). The Revenue appealed against the Income Tax Appellate Tribunal's finding that Western Union's Liaison Office in India did not constitute a Permanent Establishment (PE) under the India-USA Double Taxation Avoidance Agreement. The Delhi High Court upheld the Tribunal's conclusion, finding that the LO did not meet the requirements of a Fixed Place PE (activities were auxiliary under Article 5(3)(e)), did not constitute a Dependent Agent PE, and that the intangible software used to connect Indian The bench comprised Justices Ravinder Dudeja and Yashwant Varma. The judgment was delivered by Justice Yashwant Varma.

Summary

The Revenue appealed against the Income Tax Appellate Tribunal's finding that Western Union's Liaison Office in India did not constitute a Permanent Establishment (PE) under the India-USA Double Taxation Avoidance Agreement. The Delhi High Court upheld the Tribunal's conclusion, finding that the LO did not meet the requirements of a Fixed Place PE (activities were auxiliary under Article 5(3)(e)), did not constitute a Dependent Agent PE, and that the intangible software used to connect Indian agents to the mainframe was excluded from the PE threshold. All appeals were dismissed.

What was the outcome of The Commissioner Of Income Tax - ... vs Western Union Financial Services Inc?

The Revenue appealed against the Income Tax Appellate Tribunal's finding that Western Union's Liaison Office in India did not constitute a Permanent Establishment (PE) under the India-USA Double Taxat...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (ik-107796732)