PR. COMMISSIONER OF INCOME TAX - 1 vs M/S. AMERICAN EXPRESS (INDIA) PVT. LTD.

Judgment text excerpt

* IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 12.11.2025 Judgment delivered on: 18.05.2026 Judgment uploaded on: As per Digital Signature + ITA 656/2019 PR. COMMISSIONER OF INCOME TAX – 1 .....Appellant versus M/S. AMERICAN EXPRESS (INDIA) PVT. LTD. .....Respondent Advocates who appeared in this case For the Appellant : Mr. Debesh Panda, SSC, Ms. Zehra Khan and Mr. Vikramaditya Singh, JSCs. For the Respondent : Mr. Nageswar Rao, Mr. Ravi Lochan, Mr. Parth and Mr. Pratik Rath, Advs. CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT V. KAMESWAR RAO, J. 1. This appeal has been filed by the appellant under Section 260A of the Income Tax Act, 1961 (“Act”) for the Assessment Year (“AY”) 2009-10 challenging the order dated 03.08.2018 in ITA 2577/Del/2014 passed by the Income Tax Appellate Tribunal (“ITAT”) wherein the ITAT has allowed the assessee’s case. 2. The assessee is American Express (India) Private Limited (AEIPL) Signature Not Verified Signed By:PRADEEP ITA 656/2019 Page 1 of 32 SHARMA Signing Date:19.05.2026 17:07:32 incorporated in India, in 1994, as a 100 percent subsidiary of American Express International Inc, USA (AEII). AEIPL is engaged in data management, information analysis and control activities and provides tele- servicing and transaction processing support. AEIPL is also engaged in booking travel and accommodation for corporate clients. It was acquired from American Express Bank Ltd. (India Branches) ("AEBL") as a part of the slump sale agreement in July 2007. FACTUAL CONTEXT 3. The assessee filed its return of income on 26.09.2009 declaring net income of Rs.1,13,42,21,352/-. Thereafter, the assessee filed its revised income on 29.03.2011. The assessee’s case was selected for scrutiny through CAS and a