THE COMMISSIONER OF INCOME TAX vs. SAHARA AIRLINES LTD.

ITA - 1180 / 2009HC Delhi21 December 20095 pages
For Petitioner: RASHMI CHOPRA
AI SummaryDismissed

What did the High Court hold?

The Tribunal accepted the assessee's plea that the payments were not in the nature of royalty and no Tax Deducted at Source (TDS) was deductible. The High Court found no substantial question of law arising from the Tribunal's findings of fact.

What were the facts?

The assessee made payments to two foreign companies, Amadeus Marketing and Galileo International, for using their reservation software. The Assessing Officer considered these payments as royalty and liable for 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 income taxable in India, and if TDS is deductible under Section 195.

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

Decided on: December 21, 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

Commissioner of Income Tax

. . . Appellant

through:

Ms. Rashmi Chopra, Advocate

**VERSUS**

Sahara Airlines Ltd.

%

Ω

... 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. JUSTI

The order continues below.

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