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TMI Blog2023 (8) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... but it has never been the case of the revenue that risk factor tilts the scale for higher attribution of income to Indian PE). This worked out to Euro 0.45 and this was less than the commission of Euro 1, which was paid by the appellant- assessee to the distributor in India. Galileo Nederland BV [supra] has now merged with the order of this Court in Travelport [ 2023 (5) TMI 227 - SUPREME COURT] filed by the Revenue before this Court. In view of the fact that the judgment of the Delhi High Court has been affirmed by this Court by dismissing the appeals filed by the Revenue, we find that the appeals filed by the assessee(s) are liable to be allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... in a particular year and on consideration of global accounts. It is not possible to agree with the said submission for several reasons. Firstly, this is not the basis of the assessment made by the Assessing Officer. In fact, the Assessing Officer had mentioned in the assessment orders that the facts and circumstances of the case remain the same. Foundation and basis should have been first made in the assessment order. Secondly, the Tribunal in the earlier appeal in the case of Galileo International Inc. v. Dy. CIT [2008] 19 SOT 257 (Delhi) relating to Assessment Years 1995-96 to 1998-99 had undertaken the FAR Analysis and in respect of functions of the appellantassessee observed:- "9. ...Thus in a given case if all the operations a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worldwide that have entered into PCA. Though no guidelines are available as to how much should be income reasonably attributable to the operations carried out in India, the same has to be determined on the factual situation prevailing in each case. However, broadly to determine such attribution one has to look into the factors like functions performed, assets used and risk undertaken. On the basis of such analysis of functions performed, assets used and risk shared in two different countries, the income can be attributed. In the present case, we have found that majority of the functions are performed outside India. Even the majority of the assets i.e. host computer which is having very large capacity which processes information of all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that only a small or miniscule part of CRS operations and functions were performed in India. These were limited to the extent of generating the request and receiving the result in India. The major functioning, i.e., collecting data bases with various airlines, hotels etc. and entering or feeding them into the computer took place outside India. It was in the computer in Denver, USA that various processed data with regard to schedule of flights timing, pricing, availability, meal preference, special facilities etc. was stored and process undertaken. The role performed by the computers in India or the Indian agents was to merely get connected or be configured so that the travel agents could perform the booking function. The computers in India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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