THE COMMISSIONER OF INCOME TAX vs. SAHARA AIRLINES LTD.

ITA - 1194 / 2009HC Delhi21 December 20095 pages
For Petitioner: RASHMI CHOPRA
AI SummaryDismissed

What did the High Court hold?

The High Court held that no question of law arises from the Income Tax Appellate Tribunal's decision. The Tribunal had accepted the assessee's plea that the payments were not royalty and no Tax Deducted at Source (TDS) was deductible.

What were the facts?

The assessee made payments to foreign companies (Amadeus Marketing and Galileo International) for software used in ticket reservations. The Assessing Officer considered these payments as royalty and sought tax deduction. The assessee argued that services were rendered outside India and income accrued offshore.

What were the issues?

Whether payments made to foreign companies for software used in ticket reservations constitute royalty and are subject to TDS under Section 195 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 195

AI-generated summary — verify with the full judgment below

#### IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA No. 1176/2009 & CM No. 16086/2009

ITA No. 1177/2009 & CM No. 16088/2009 ITA No. 1178/2009 & CM No. 16090/2009 ITA No. 1179/2009 & CM No. 16092/2009 ITA No. 1180/2009 & CM No. 16094/2009 ITA No. 1181/2009 & CM No. 16096/2009 ITA No. 1182/2009 & CM No. 16098/2009 ITA No. 1183/2009 & CM No. 16100/2009 ITA No. 1184/2009 & CM No. 16102/2009 ITA No. 1185/2009 & CM No. 16104/2009 ITA No. 1186/2009 & CM No. 16105/2009 ITA No. 1190/2009 & CM No. 16112/2009 ITA No. 1191/2009 & CM No. 16114/2009 ITA No. 1192/2009 & CM No. 16116/2009 ITA No. 1193/2009 & CM No. 16118/2009 ITA No. 1194/2009 & CM No. 16120/2009 ITA No. 1195/2009 & CM No. 16122/2009 ITA No. 1196/2009 & CM No. 16124/2009 ITA No. 1197/2009 & CM No. 16126/2009

ITA No. 1198/2009 & CM No. 16128/2009 ITA No. 1199/2009 & CM No. 16130/2009

Decided on: December 21, 2009

Commissioner of Income Tax

%

... Appellant

through:

Ms. Rashmi Chopra, Advocate

**VERSUS**

Sahara Airlines Ltd.

... Respondent

through:

Mr. Percy Pardiwala, Sr. Adv.

with Mr. U.A. Rana,

Ms. Anuradha Sharma and Ms. Priyanka Dayal, Advocates

CORAM :-

THE HON'BLE MR. JUSTICE A.K. SIKRI THE HON'BLE MR. JUSTIC

The order continues below.

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