* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 19 September 2024 Judgment pronounced on: 18 December 2024 + ITA 1288/2006 DIRECTOR OF INCOME TAX INTN'L .....Appellant Through: Mr. Aseem Chawla, SSC with Ms. Pratishtha, JSC.

versus WESTERN UNION FINANCIAL SERVICES INC. .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 724/2016 PR.COMMISSIONER OF INCOME TAX .....Appellant Through: Mr. Aseem Chawla, SSC with Ms. Pratishtha, JSC.

versus WESTERN UNION FINANCIAL SERVICES .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 192/2019 COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)- 3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr.

Anant Mann, Adv.

versus WESTERN UNION FINANCIAL SERVICES INC. .....Respondent Signature Not Verified ITA 1288/2006 & Connected Matters Page 1 of 72 Digitally Signed Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 126/2016 DIRECTOR OF INCOME TAX-II .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr.

Anant Mann, Adv.

versus WESTERN UNION FINANCIAL SERVICES INC. .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 141/2016 DIRECTOR OF INCOME TAX –II .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr.

Anant Mann, Adv.

versus WESTERN UNION FINANCIAL SERVICES INC .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 235/2019 THE COMMISSIONER OF INCOME TAX-

INTERNATIONAL TAXATION – 3 .....Appellant Through: Mr. Aseem Chawla, SSC with Ms. Pratishtha, JSC.

Signature Not Verified ITA 1288/2006 & Connected Matters Page 2 of 72 Digitally Signed versus WESTERN UNION FINANCIAL SERVICES INC. .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 237/2019 THE COMMISSIONER OF INCOME TAX-

INTERNATIONAL TAXATION – 3 .....Appellant Through: Mr. Aseem Chawla, SSC with Ms. Pratishtha, JSC.

versus WESTERN UNION FINANCIAL SERVICES INC. .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 110/2024 THE COMMISSIONER OF INCOME TAX -

INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr.

Anant Mann, Adv.

versus WESTERN UNION FINANCIAL SERVICES INC .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 111/2024 THE COMMISSIONER OF INCOME TAX -

Signature Not Verified ITA 1288/2006 & Connected Matters Page 3 of 72 Digitally Signed INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr.

Anant Mann, Adv.

versus WESTERN UNION FINANCIAL SERVICES INC .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates.

+ ITA 597/2019 THE COMMISSIONER OF INCOME TAX -

INTERNATIONAL TAXATION -3 .....Appellant Through: Mr. Ruchir Bhatia, SSC with Mr.

Anant Mann, Adv.

versus WESTERN UNION FINANCIAL SERVICES INC .....Respondent Through: Mr. Ajay Vohra, Sr. Adv. with Mr. Gaurav Jain and Mr. Shubham Gupta, Ms. Shalini, Advocates. CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE RAVINDER DUDEJA

J U D G M E N T

YASHWANT VARMA, J.

1. These batch of appeals emanate from judgments handed down by the Income Tax Appellate Tribunal, [1Tribunal] negating the stand of the appellant and principally holding that the respondent-assessee did not Signature Not Verified ITA 1288/2006 & Connected Matters Page 4 of 72

Digitally Signed

have a Permanent Establishment, [PE] in India in the relevant Assessment Years, [AYs] as contemplated under Article 5 of the Double Taxation Avoidance Agreement, [DTAA] between India and the United States of America, [USA]. The appeals themselves pertain to AYs 2001-02 [ITA 1288/2