2024 (1) TMI 363 - HC - Income Tax

Accrual of Income in India - PE in India - attribution rate of revenue for the Indian operations of the Permanent Establishment - 75 percent of the gross profits earned from Indian operations, attributed to the respondent/assessee sustained by DRP - HELD THAT - Tribunal partly allowed the appeal of the respondent/assessee by following its own decision for AYs 2007-08 to 2014-15, thereby directing the Assessing Officer to adopt the attribution rate of revenue for the Indian operations of the Permanent Establishment at 15 percent of gross booking fees for the AY in issue, i.e., AY 2015-16. The coordinate bench in AY 2006-07, while dealing with 2022 (9) TMI 311 - DELHI HIGH COURT , has sustained the said conclusion and gone on to hold that no substantial question of law arose for its consideration. It is this decision which was affirmed by the Supreme Court with the dismissal of the SLP, as noted in Travelport L.P. USA 2023 (7) TMI 700 - SC ORDER Given this position, we are of the opinion that no substantial question of law arises for our consideration.

Summary

Issues involved: Condonation of delay in re-filing the appeal, Merits of the appeal concerning Assessment Year 2015-16.

Condonation of delay in re-filing the appeal:
An application was filed by the appellant/revenue seeking condonation of a 220-day delay in re-filing the appeal. The court, intending to decide the appeal on merits, inclined to condone the delay and accordingly ordered so. The application was disposed of.

Merits of the appeal - Assessment Year 2015-16:
The appeal aimed to challenge the order passed by the Income Tax Appellate Tribunal related to Assessment Year 2015-16. The senior standing counsel for the appellant/revenue conceded that the decision of the Supreme Court in a related case held the field concerning the merits of the case. The key issue was whether the view taken by the Dispute Resolution Panel regarding the attribution of gross profits earned from Indian operations to the respondent/assessee was sustainable. The Tribunal partially allowed the appeal by directing the Assessing Officer to adopt a specific attribution rate for the Indian operations of the Permanent Establishment for the year in question. The court noted that a similar decision for a previous year was affirmed by the Supreme Court, and as no substantial question of law arose for consideration, the appeals were closed. The court directed the registry to dispatch a copy of the order to the respondent/assessee via all modes, including email.