2012 (12) TMI 126

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....our related services. It had entered into a General Sales & Marketing Service Agreement with the Assessee viz. Star Cruises Management Ltd. Isle of Man ('SCML'), a Non-resident company, for selling their cruise tickets and for providing related marketing services for an agreed remuneration. According to the assessee, the agreement between assessee and the Indian company was on principal to principal basis. Tickets and final confirmation were being given by the foreign company to the customers and passengers directly. None of the ships of foreign company either touch an Indian port or enter into Indian territorial water. Indian customers have to take cruise from foreign port. The Indian company collects the money and remit the same ....

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....nd of appeal : "1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) erred in holding that no income accrues/arises or is deemed to accrue/arise in India for the payments which are remitted to the assessee on account of cruise tickets booked by its Indian agent, ignoring the fact that the entire sale proceeds collected by its Agent, M/s. Star Cruises (India) Travel Services Pvt. Ltd., were received in India on behalf of the assessee and belonged to it.   2. The Appellant prays that the order of the Ld. CIT(A) on the above grounds be set aside and that of the Assessing Officer restored. 3. The Appellant craves leave to amend or alter any ground or add a new ground which may be necessary". 6. At the....

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.... in the different way in the case of M/s. Star Cruises (India) Services Pvt. Ltd. (supra). The Tribunal has already held that the assessee was not having any 'business connection' in India within the meaning of section 9(1)(i) of the Act, and hence, no income has been accrued to the assessee i.e. M/s. SCML in India in respect of booking or sale of tickets for 'tour packages' of the cruises in India. The reasons given for cancelling the demand in the case of M/s. Star Cruises (India) Services Pvt. Ltd. (SCITS) are mutatis mutandis, are also applicable to the assessee's case. We, therefore, hold that no income has been accrued to the assessee in India on the sale of tickets/booking of 'Cruise tour packages' which was done through Star Cruises....