TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether receipts from hotel-related marketing, reservation, advertising, and loyalty programme services were taxable in India as royalty or fees for technical services, or constituted business profits not chargeable in the absence of a permanent establishment.
Analysis: The dispute was covered by earlier decisions in the assessee's own case for prior assessment years, where identical receipts were held to be business income and not royalty or fees for technical services. The Revenue's challenge to that view had already been rejected by the jurisdictional High Court. Following those binding decisions, the Tribunal treated the receipts from the Indian hotel clients as business profits. As the assessee had no permanent establishment in India, Article 7 of the India-USA DTAA prevented taxation of such profits in India, and the characterisation under section 9(1)(vi) and section 9(1)(vii) of the Income-tax Act did not alter that result.
Conclusion: The receipts were not taxable as royalty or fees for technical services and were assessable, if at all, only as business profits; the issue was decided in favour of the assessee.
Final Conclusion: The Revenue's appeals failed, and the deletion of the additions was sustained.
Ratio Decidendi: Where identical receipts have already been held in the assessee's own case to be business profits and not royalty or fees for technical services, and the assessee has no permanent establishment in India, Article 7 of the applicable DTAA bars taxation of those receipts in India.
TaxTMI 
TaxTMI 
