Director Of Income Tax -Ii vs Western Union Financial Services Inc

ik-162028712 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 Appellant Pr. Commissioner of Income Tax Appellant Western Union Financial Services Inc Respondent

Case Significance

Director Of Income Tax -Ii vs Western Union Financial Services Inc is a Delhi High Court decision dated December 18, 2024 (citation: ik-162028712). The Revenue appealed 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. In a 72-page judgment, the court upheld the ITAT's findings, ruling that the liaison office did not satisfy the tests for a Fixed Place PE (no disposal/control of premises), Dependent Agent PE (Indian agents were independent third parties), or Software PE (intangible property excluded from PE threshold). The ba The bench comprised Justices Ravinder Dudeja and Yashwant Varma. The judgment was delivered by Justice Yashwant Varma.

Summary

The Revenue appealed 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. In a 72-page judgment, the court upheld the ITAT's findings, ruling that the liaison office did not satisfy the tests for a Fixed Place PE (no disposal/control of premises), Dependent Agent PE (Indian agents were independent third parties), or Software PE (intangible property excluded from PE threshold). The batch of income tax appeals was dismissed.

What was the outcome of Director Of Income Tax -Ii vs Western Union Financial Services Inc?

The Revenue appealed 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. In a 72-page ju...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (ik-162028712)