THE COMMISSIONER OF INCOMT AX vs. SAHARA AIRLINES LTD.

ITA - 1197 / 2009HC Delhi21 December 20095 pages
For Petitioner: RASHMI CHOPRA
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arose from the ITAT's decision. The ITAT had accepted the assessee's plea that the payments were not royalty and no TDS was deductible.

What were the facts?

The assessee airline made payments to foreign companies for using reservation software. The Assessing Officer treated these payments as royalty and sought tax deduction. The assessee argued the services were rendered outside India and income accrued offshore.

What were the issues?

Whether payments made for reservation software to foreign companies 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. J

The order continues below.

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