Western Union Financial Services Inc. v. ADIT

104 ITD 34Income Tax Appellate Tribunal2007#4439 most cited

What is Western Union Financial Services Inc. v. ADIT authority for?

Software installed in India granting access to an assessee's mainframe located outside India does not constitute a Permanent Establishment (PE) in India. Agents are not considered to have an agency PE if they are not economically dependent on the assessee and lack the authority to conclude contracts.

26

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2024.

Also referred to as

Western Union Financial Services Inc · 104 ITD 34 · Permanent Establishment · PE · Agency PE · Fixed Place PE · Dependent Agent PE · business connection · section 5(2) · section 9(1)(i) · intangible property

Sections most often in play

Section 1961Section 143(2) of the Income Tax ActSection 143(3) of the Income Tax ActSection 144C(13) of the Income Tax ActSection 1961: Section 143(2)Section 1961: Section 143(3)Section 1961: Section 144C(13)Section 1961: Section 234A

Issues it is cited on

dependent agent peagency pefixed place pesection 5(2)section 9(1)(i)credit for tdsbusiness connectioninterest u/s 234bsection 144c(1)permanent establishmentinterest under section 234aadvance tax

Judgments citing Western Union Financial Services Inc. v. ADIT

Hyundai Motor India Limited, Kancheepuram vs. DCIT, Chennai

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 563/CHNY/2015[2010-11]Status: DisposedITAT Chennai27 Apr 2017AY 2010-11
Section 143(3)Section 253(4)

…usiness through that place. It is only when these three conditions are satisfied, a PE under the basic rule can be said to have come into existence. 55. . As observed by a Co-ordinate Bench in the case of Western Union Financial Services Inc. vs. ADIT (2007) 104 ITD 34 (Del), "a PE should project in the foreign enterprises in India (the other Contracting State)". In the case of CIT vs. Visakhapatnam Port Trust (1983) 144 ITR 146 (AP), Hon’ble Andhra Pradesh High Court, after an elaborate survey of worldwide judicial precedents and technical literature on this issue, had observed that, "in our opinion, the words…

Hyundai Motor India Limited, Kancheepuram vs. DCIT, Chennai

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 853/CHNY/2014[2009-10]Status: DisposedITAT Chennai27 Apr 2017AY 2009-10
Section 143(3)Section 253(4)

…usiness through that place. It is only when these three conditions are satisfied, a PE under the basic rule can be said to have come into existence. 55. . As observed by a Co-ordinate Bench in the case of Western Union Financial Services Inc. vs. ADIT (2007) 104 ITD 34 (Del), "a PE should project in the foreign enterprises in India (the other Contracting State)". In the case of CIT vs. Visakhapatnam Port Trust (1983) 144 ITR 146 (AP), Hon’ble Andhra Pradesh High Court, after an elaborate survey of worldwide judicial precedents and technical literature on this issue, had observed that, "in our opinion, the words…

DCIT, Chennai vs. Hyundai Motor India Limited, Kancheepuram

In the result, while CO of the assessee is dismissed, all the three appeals filed by the assessee are partly allowed in the terms indicated above, all the three appeals filed by the revenue are dis...

ITA 739/CHNY/2014[2009-10]Status: DisposedITAT Chennai27 Apr 2017AY 2009-10
Section 143(3)Section 253(4)

…usiness through that place. It is only when these three conditions are satisfied, a PE under the basic rule can be said to have come into existence. 55. . As observed by a Co-ordinate Bench in the case of Western Union Financial Services Inc. vs. ADIT (2007) 104 ITD 34 (Del), "a PE should project in the foreign enterprises in India (the other Contracting State)". In the case of CIT vs. Visakhapatnam Port Trust (1983) 144 ITR 146 (AP), Hon’ble Andhra Pradesh High Court, after an elaborate survey of worldwide judicial precedents and technical literature on this issue, had observed that, "in our opinion, the words…

ADIT (It) (2), Mumbai vs. Daimler Ag, Mumbai

ITA 7648/MUM/2013[2008-09]Status: DisposedITAT Mumbai28 Sept 2016AY 2008-09

Bench: Shri R.C. Sharma, Am & Shri Sandeep Gosain, Jm आयकर अपील सं./ I.T.A. No. 7648 & 7649/Mum/2013 ("नधा"रण वष" / Assessment Year: 2008-09 & 2009-10) Asst. Dit(It) -1(2), M/S. Daimler Ag Room No.119, 1St Floor, Scindia C/O Srbc & Associates 14Th Floor, The Ruby 29, बनाम/ House, N.M. Road, Ballard Estate, Mumbai-400 038. Senapati Bapat Marg Vs. Dadar (West) Mumbai-400 028. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aabcd 2354C (अपीलाथ" /Appellant) (""यथ" / Respondent) :

For Appellant: Shri Hemen Chandariya
Section 143(3)Section 195Section 234B

…page nos. 580,589&59) of Paper Book volume II and the Authority for Advance Rulings in case of TVM Ltd v CIT (1999) 237 ITR 230 (Refer page 600 &618) of paper book volume II). The Hon’ble Delhi Tribunal has in the case of Western Union Financial Services Inc (104 ITD 34) ( Refer page no. 522 & 547 of paper book volume II), observed that here is no evidence to show that the extent of their activities of the assessee, compared to all these activities, is so large that it can be said that hey are dependent on the assessee for their earnings or revenues. Accordingly, the agents are not economically dependent upon the…

DDIT, New Delhi vs. M/S. Western Union Financial Service Inc., Gurgaon

In the result, appeal of the Revenue is dismissed

ITA 2077/DEL/2012[2006-07]Status: DisposedITAT Delhi01 Jun 2016AY 2006-07

Bench: Shri Bhavnesh Saini, J.M. & Shri O.P. Kant, A.M.

For Appellant: Shri Tarandeep Singh, C.AFor Respondent: Shri G.K. Dhall, CIT-D.R

…ut since there were no P.E. in India under Rule-5 of DTAA between India and USA, no profits could be attributable to the Indian operations of the assessee and taxed in India. The appeal of assessee was allowed in A.Y. 2001-2002 by ITAT Delhi Bench reported in 104 ITD 34. The issue is, therefore, covered by the Orders of 6 ITA.No.2077/Del./2012 M/s. Western Union Financial Services Inc. Gurgaon ITAT in the case of the assessee in earlier years as referred to above. There is no infirmity in the Order of the Ld. CIT(A) in following the Orders of the Tribunal for the purpose of deleting the addition. We, accordingly,…

ACIT, New Delhi vs. M/S. Radware Ltd, New Delhi

In the result, the appeal filed by the Revenue stands dismissed

ITA 3099/DEL/2009[2005-06]Status: DisposedITAT Delhi21 Jan 2016AY 2005-06

Bench: Shri N.K. Saini & Smt. Beena Pillai

Section 142(1)Section 143(2)

…DELHI BENCH: ‘F’ NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER & SMT. BEENA PILLAI, JUDICIAL MEMBER I.T.A .No.-3099/Del/2009 (ASSESSMENT YEAR-2005-06) ACIT, vs Radware Ltd. Circle 2(1), U & I, Business Centre, Room No. 414, Drum Shaped F-41, NDSE-1, Bldg., New Delhi. New Delhi. Appellant by Smt. Rasmita Jha, Sr. DR Respondent by Sh. Ved Jain, CA Date of Hearing 09.12.2015 Date of Pronouncement 21.01.2016 ORDER PER BEENA PILLAI, JUDICIAL MEMBER: The present appeal has been filed by the Revenue against the order of the ld. CIT(A)’s-XXIX, New Delhi vide his order dated 26/03/2009 for A.Y. 2005-06 on t…