High Court of Delhi · Judgments and reasoned final orders
The Commissioner of Income Tax - International Taxation - 3 v. Travelport International Operations Ltd.
ITA 212/2025, ITA 219/2025 & ITA 233/2025 ·
Attribution of 15% of revenue to the Indian permanent establishment of a global CRS/GDS provider upheld following Supreme Court precedent in Travelport L.P. USA where distribution fees paid in India exceeded attributed profits.
1. FACTS OF THE CASE
The Revenue filed three appeals (ITA 212/2025 for AY 2013-14, ITA 219/2025 for AY 2012-13, and ITA 233/2025 for AY 2015-16) against the common order of the ITAT dated 23.08.2022 in ITA Nos. 6988/Del/2017, 7541/Del/2017, and 1673/Del/2019. For these assessment years, the Assessing Officer had departed from the historical 15% profit-attribution methodology and attributed 100% of Indian booking revenues to the assessee's Permanent Establishment in India while allowing 63.15% (AYs 2012-13 & 2013-14) or 46.81% (AY 2015-16) as expense paid to Interglobe Technology Quotient Pvt. Ltd. (ITQPL). The ITAT restored the 15% attribution formula and held that since the commission paid to ITQPL exceeded 15% of gross revenue, no further income remained taxable in India.
2. DISCUSSION BY THE COURT
The Division Bench noted that the identical question in the assessee's own case had already been rejected by a coordinate Bench of the Delhi High Court on 24.07.2025 in ITA 239/2025 (The Commissioner of Income Tax - International Taxation - 3 v. Travelport International Operations Ltd.), which relied directly on the Supreme Court's decision in Commissioner of Income-tax (International Taxation) v. Travelport L.P. USA, (2023) 153 taxmann.com 176 (SC). Since there was no material change in functionality, assets, or risks across the relevant years, the 15% attribution methodology affirmed by the Supreme Court governed the field.
3. JUDICIAL DECISION
Following the coordinate Bench judgment in ITA 239/2025 and the Supreme Court decision in Travelport L.P. USA, (2023) 153 taxmann.com 176 (SC), the Delhi High Court held that no substantial question of law arose and dismissed ITA 212/2025, ITA 219/2025, and ITA 233/2025.
4. OUTCOME
In favour of the assessee (Travelport International Operations Ltd.); all 3 Revenue appeals dismissed.
5. AKHB REVIEW POINT
AKHB analysis: In CRS/GDS permanent-establishment cases, once 15% of India-generated revenue is attributed to Indian operations and the remuneration paid to the Indian distributor (ITQPL) exceeds that 15% threshold, the attribution stands extinguished under the Supreme Court ruling in Travelport L.P. USA ((2023) 153 taxmann.com 176 (SC)).
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Refers to the Income-tax Act, 1961 and allied statutory rules/circulars as applicable to the relevant assessment years.
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