COMMISSIONER OF INCOME TAX vs. M/S KLM ROYAL DUTCH AIRLINES

ITA - 121 / 2006HC Delhi13 April 200953 pages
For Petitioner: P.L.BANSAL
AI SummaryPartly Allowed

What did the High Court hold?

The High Court held that the supplementary commission retained by travel agents is indeed commission within the meaning of Section 194H. However, it disagreed with the Revenue regarding concessional tickets issued to travel agents, viewing the difference in price as a discount and not commission.

What were the facts?

The Revenue appealed against the ITAT's decision regarding the taxability of supplementary commission received by airlines from travel agents. The core issue revolved around whether this supplementary commission constituted 'commission' under Section 194H of the Income Tax Act, 1961.

What were the issues?

Whether supplementary commission received by travel agents from airlines is 'commission' under Section 194H, and whether tickets issued at a concessional price to travel agents constitute commission.

Which sections of the Income-tax Act were involved?

Section 194H,Section 201(1),Section 201(1A),Section 197

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* THE HIGH COURT OF DELHI AT NEW DELHI %

Judgment delivered on : 13.04.2009

ITA Nos. 306/2005 & 123/2006,

COMMISSIONER OF INCOME TAX NEW DELHI

..... Appellant Through: Mr R.D. Jolly, Sr. Standing Counsel with Mr Paras Chaudhary, Jr. Standing Counsel.

versus

SINGAPORE AIRLINES LTD

..... Respondent Through: Mr C.S. Aggarwal, Sr. Advocate with Mr Prakash Kumar, Advocate

ITA Nos. 121/2006 & 432/2006

COMMISSIONER OF INCOME TAX NEW DELHI

..... Appellant Through: Mr R.D. Jolly, Sr. Standing Counsel with Mr Paras Chaudhary, Jr. Standing Counsel.

versus

KLM ROYAL DUTCH AIRLINES

..... Respondent Through: Mr C.S. Aggarwal, Sr. Advocate with Mr Prakash Kumar, Advocate COMMISSIONER OF INCOME TAX NEW DELHI

..... Appellant Through: Mr R.D. Jolly, Sr. Standing Counsel with Mr Paras Chaudhary, Jr. Standing Counsel.

versus

PAKISTAN INTERNATIONAL AIRLINES CORP. ..... Respondent Through: Mr C.S. Aggarwal, Sr. Advocate with Mr Prakash Kumar, Advocate 2009:DHC:1342-DB

ITA No. 116/2

The order continues below.

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