THE COMMISSIONER OF INCOMET AX vs. SAHARA AIRLINES LTD.

ITA - 1193 / 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 arises from the ITAT's decision. The ITAT 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 (M/s. Amadeus Marketing and M/s. Galileo International) for using reservation software. The Assessing Officer treated these payments as royalty and sought tax deduction at source. The assessee contended that the services were rendered outside India and the income accrued offshore.

What were the issues?

Whether payments made for software usage to foreign companies constitute royalty and are subject to TDS, and if the services rendered outside India preclude taxability in India.

Which sections of the Income-tax Act were involved?

Section 195(2)

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. JUSTICE SIDDHARTH MRI

The order continues below.

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