2012 (3) TMI 259

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....disposed of by this common order for the sake of convenience. 2. The grounds raised in ITA No. 2305/Del/2011 read as under:- "(i)  On the facts and circumstances of the case, Ld. Commissioner of Income Tax (Appeals) has erred in holding that the receipts of the assessee were in nature of Business Profits as against Royalties /FIS. (ii)  On the facts and circumstances of the case, Ld. Commissioner of Income Tax (Appeals) has erred in not appreciating that part of payment received by assessee form Indian customers was towards use of trademark and constitutes Royalty in terms of Article 12 of DTAA. (iii)  On the facts and circumstances of the case, has erred in not appreciating that part of payment received by assess....

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....e constitutes FIS/ Royalty in terms of DTAA. (iv)  On the facts and circumstances of the case, Ld. Commissioner of Income Tax (Appeals) has erred in not appreciating that part of payment received by assessee from Indian customers for use of highly sophisticated CRS systems and towards marketing, publicity, frequent flier program, starwood preferred guest program and reservation fees would constitute FIS/Royalty in term of DTAA. (v)  The appellant prays for leave to add, amend, modify or alter any grounds of appeal at the time or before the hearing of the appeal." 4. The assessee company is engaged in the business of providing various hotel related services to hotels across the world. The assessee had entered into agreemen....

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....from rendering services of advertisement, networking, and promotion, was also held to be taxable as royalty and / or fees for technical services. It is seen from the body of the order that it was brought to the notice of the assessing officer that the ITAT, Delhi, had passed an order on 4.10.2006 in the assessee's own case, for the A.Yrs. 1995-96 to 2000-01, holding that the amount received by the assessee from the Indian hotels/ clients could not be treated as royalty or fees for technical or included services. The Assessing Officer observed that appeal had been filed to the High Court by the department against the judgement of the ITAT, and he proceeded to bring to tax the revenues received from the Indian hotels, at 15% as per the provis....