Expedia Lodging Partner Services Sarl vs. ACIT

Parties Involved

Facts Summary

The assessee, Expedia Lodging Partner Services Sarl, a Swiss entity, operates in India through two Indian agents: Expedia Online Travel Services India Pvt Ltd (EXP-IN) and Hotel.com India Pvt Ltd (HCOM-IN). EXP-IN provides contract software development (CSD) services and various support services, while HCOM-IN collects commission from Indian lodging suppliers. The assessee claims that it has no permanent establishment (PE) in India and that its income is not taxable in India. The Assessing Officer (AO) held that EXP-IN is a dependent agent permanent establishment (DAPE) of the assessee in India, attributing profits to it. The assessee appealed against this decision, arguing that EXP-IN does not qualify as a DAPE and that the attribution of profits is erroneous.…

Legal Issues

• 1. Whether EXP-IN qualifies as a DAPE of the assessee in India?
• 2. Whether the attribution of profits to the alleged PE is correct?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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