Director Of Income Tax Intn'L vs Western Union Financial Servic

ik-122497023 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 (4)

Commissioner of Income Tax (International Taxation)-3 Appellant Director of Income Tax (International) Appellant Principal Commissioner of Income Tax Appellant Western Union Financial Services Inc Respondent

Case Significance

Director Of Income Tax Intn'L vs Western Union Financial Servic is a Delhi High Court decision dated December 18, 2024 (citation: ik-122497023). The Revenue appealed against ITAT orders holding that Western Union Financial Services Inc.'s liaison office in India did not constitute a Permanent Establishment (PE) under the India-USA DTAA, and that the respondent's software and Indian agents' premises also did not create a PE. The court held that the LO's activities were auxiliary in character falling within Article 5(3)(e) of the DTAA, the LO did not satisfy the requirements of a Dependent Agent PE, and software being intangible propert The bench comprised Justices Ravinder Dudeja and Yashwant Varma. The judgment was delivered by Justice Yashwant Varma.

Summary

The Revenue appealed against ITAT orders holding that Western Union Financial Services Inc.'s liaison office in India did not constitute a Permanent Establishment (PE) under the India-USA DTAA, and that the respondent's software and Indian agents' premises also did not create a PE. The court held that the LO's activities were auxiliary in character falling within Article 5(3)(e) of the DTAA, the LO did not satisfy the requirements of a Dependent Agent PE, and software being intangible property was excluded from the PE threshold. The appeals were dismissed, upholding the Tribunal's conclusion that no PE existed in India.

What was the outcome of Director Of Income Tax Intn'L vs Western Union Financial Servic?

The Revenue appealed against ITAT orders holding that Western Union Financial Services Inc.'s liaison office in India did not constitute a Permanent Establishment (PE) under the India-USA DTAA, and th...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (ik-122497023)