COMMISSIONER OF INCOME TAX vs. AIR FRANCE

ITA - 964 / 2008HC Delhi13 April 200953 pages
For Petitioner: PREM LATA BANSAL
AI SummaryPartly Allowed

What did the High Court hold?

The High Court held that supplementary commission retained by travel agents is indeed commission under Section 194H, making airlines liable for failure to deduct tax at source. However, discounts on tickets issued to travel agents for personal use were not considered commission.

What were the facts?

The Revenue appealed against the ITAT's decision concerning the taxability of supplementary commission and discounts received by airlines from their travel agents. The core issue was whether these amounts constituted 'commission' under Section 194H of the Income Tax Act, requiring tax deduction at source.

What were the issues?

Whether supplementary commission received by travel agents is 'commission' under Section 194H, and if 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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Cases cited in this judgment(8)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

* 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:1338-DB

ITA No. 116/2

The order continues below.

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