2018 (12) TMI 1901

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....g that the Centralized services fee received by the appellant for rendering various marketing, advertisement & other services to customers in India, were not tax able as "Fees for Technical Services" ('FTS'), in terms of Section 9 of the Income Tax Act, 1961 as well as Article 12 of the India-US Double Taxation Avoidance Agreement ('DTAA')." 2. At the outset Ld. Counsel informed that this issue stands covered by the decision of the Tribunal in assessee's own case for the assessment year 2010-11 vide order dated 28.9.2017 passed in ITA No. 202/Del/2016 which has also been confirmed by the Hon'ble High Court vide judgment dated 18.4.2018 passed in ITA No. 467/ 2018. On the other hand Ld. DR strongly relied upon the order of the AO. 3. ....

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....r this category, the Assessee Company will provide reservation services interalia offering, booking, modifying and communicating Guest Rooms and Meeting Space reservations for the Hotel. These services are rendered using the internet / telephone. D. Technological Services These services include Network Support Services ("NSS") and Starwood Portal Services ("SPS"). NSS manages and maintains Global Infrastructure (Wide Area Network) and emails to provide connectivity of hotel to Technology Centre. NSS supports day to day operations of WAN, email and remote access. SPS is the portal which acts as a tool for knowledge sharing and access to business content. E. Operations Services It includes Guest Satisfaction Index Administration ....

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....also been incorporated. Thereafter, he examined the taxability of the receipts in 9(1)(vii) of Income Tax Act as well as Article 12 of DTAA held that in both the provisions the said amount is taxable as FTS. For coming to the conclusion he has given the detailed finding. Ld. CIT(A) noted that similar issue stands covered in the case of group concern M/s. Sheraton International Inc. for the assessment years 1997-2001 and also incorporated the relevant finding of the order which has now been confirmed by the Hon'ble Delhi High Court also. Following the same he held that said receipt cannot be brought to tax in India as its receipt. 5. We find that, this Tribunal not only in the earlier years in the case of group concern, but also in ass....