THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. TRAVELPORT INTERNATIONAL OPERATIONS LTD.

Facts

The appeals were filed by the Commissioner of Income Tax (International Taxation) - 3 against the respondent, Travelport International Operations Ltd. The appeals concerned multiple assessment years, including those from 2007-08 to 2014-15. The core issue revolved around the attribution of profits from Indian operations to the assessee. The revenue's appeals were based on the grounds that the Commissioner (Appeals) had sustained the view that 15 percent of profits from Indian operations could be attributed to the assessee. A coordinate bench of the Delhi High Court had previously affirmed this conclusion for Assessment Year 2006-07, and this decision was subsequently affirmed by the Supreme Court.

Held

The Delhi High Court held that the questions raised before it were covered by the judgment of the Apex Court in Commissioner of Income Tax (International Taxation) v. Travelport L.P. USA, (2023) 153 Taxman.com 176 (SC). The Court also noted that a coordinate bench of the Delhi High Court had followed the Supreme Court's decision in an order dated 24.07.2025 in ITA 239/2025, concerning Travelport International Operations Ltd. In that order, the coordinate bench observed that in view of the Supreme Court's judgment, the issue stood covered against the revenue. The Court further noted that appeals concerning Assessment Years 2007-08 to 2014-15 had been decided against the Revenue on 08.12.2023. Consequently, the High Court concluded that no substantial question of law arose for consideration in the present appeals, as the issue had been decided against the revenue. The appeals were therefore dismissed as being without merit.

Key Issues

1. Whether the view taken by the Commissioner (Appeals) that 15 percent of the profits earned from Indian operations could be attributed to the respondent/assessee was sustainable in law, turning on the interpretation of profit attribution principles for international operations. Assessee's Contentions: The respondent/assessee did not file any specific contentions in this judgment. The judgment relies on previous pronouncements. Revenue's Contentions: The appellant/revenue, through its counsel, fairly stated that the issue was covered by the Supreme Court's judgment in Commissioner of Income Tax (International Taxation) v. Travelport L.P. USA, (2023) 153 Taxman.com 176 (SC). The revenue also acknowledged that similar appeals concerning Assessment Years 2007-08 to 2014-15 had been decided against the revenue by this Court in ITA 718/2013 to ITA 731/2023 on 08.12.2023.