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

ik-35961068 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-II 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-35961068). Batch of income tax appeals by the Revenue challenging ITAT's finding that Western Union's liaison office in India did not constitute a Permanent Establishment under the India-USA DTAA. The court examined Fixed Place PE, Dependent Agent PE (DAPE), and software PE arguments, finding that the LO's activities were auxiliary in character under Article 5(3)(e) and the software being intangible property was excluded from the PE threshold. The appeals were dismissed, affirming that Western Union had The bench comprised Justices Ravinder Dudeja and Yashwant Varma. The judgment was delivered by Justice Yashwant Varma.

Summary

Batch of income tax appeals by the Revenue challenging ITAT's finding that Western Union's liaison office in India did not constitute a Permanent Establishment under the India-USA DTAA. The court examined Fixed Place PE, Dependent Agent PE (DAPE), and software PE arguments, finding that the LO's activities were auxiliary in character under Article 5(3)(e) and the software being intangible property was excluded from the PE threshold. The appeals were dismissed, affirming that Western Union had no PE in India.

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

Batch of income tax appeals by the Revenue challenging ITAT's finding that Western Union's liaison office in India did not constitute a Permanent Establishment under the India-USA DTAA. The court exam...

Judgment

Read the full judgment on the official India Courts portal.

Read on Indian Kanoon

Source: Indian Kanoon (ik-35961068)