TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 628
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 2. In this appeal, assessee has raised following grounds: "Based on the facts and circumstances of the case, Global Hospitality Licensing Company SARL hereinafter referred to as the Appellant, respectfully submits the following grounds of appeal against the order of the learned Commissioner of Income-tax (Appeals)-10, Mumbai [CIT(A) under section 250 of the Income-tax Act, 1961 (the Act) dated September 19, 2014, which are without prejudice to each other: 1. The CIT(A) erred in holding that all the payments received from the Indian hotels pursuant to the International Marketing Program and Participation Agreement (IMPPA) were income chargeable to tax in India as fee for technical services; 2. The CIT(A) erred in not considering t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ase pertaining to this issue, as emanating from record, are: The assessee is a company incorporated in Luxembourg and the tax resident of Luxembourg. For the year under consideration, assessee filed its return of income on 30/03/2012 declaring total income at Rs. Nil. During the year, assessee had received contribution from various Indian hotels for sales and marketing activities and reimbursement of expenditure under IMPPA. 5. The Assessing Officer vide order dated 13/05/2014 passed under section 143(3) r.w.s. 144C(3) of the Act observed that Marriott is a leading worldwide hospitality group. Under the IMPPA, assessee is to provide for advertising space in magazines, newspapers and other printing media, advertising slots on radio, televis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ellant AR's submissions. Having taken note to the same and after taking note to the IMPPA activities as detailed by the AO, 1 am of the considered view that the A.O was completely justified in his action in taxing the said sun, which was received by the appellant under the head royalty/FTS. As the appellant company was getting such receipt ls on the basis of services provided to the Indian Hotels here using the brand, the nature of services, which was provided was completely in the pt of technical services. The appellant was authorized for giving favour of the Mam group in a different manner as detailed in IMPPA agreement. Such Tamil services was so intended for providing better business and better clientele to the hands of the remitter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of no substance and the same is also rejected.' Being aggrieved, assessee is in appeal before us. 7. During the course of hearing, learned Authorised Representative ("learned AR') submitted that the amount received cannot be treated as fees for technical services under the provisions of the Act as well as DTAA since the marketing services do not involve any advisory services to qualify as consultancy services nor the assessee is performing any management functions of the Indian hotel owners to qualify as managerial services. The learned AR further submitted that learned AAR ruling in International Hotel Licensing Company Co. (supra), which was followed by Assessing Officer as well as the learned CIT(A), has been challenged before Hon'ble ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is taxable as fees for technical services, in respect of similar agreement, observed as under: "22. In the instant case from the provisions of the IMPPA, referred to above, as well as the classification of expenditure of the fund, as noted by the independent auditors under the heads (a), (b), (c), (d), (f) indicated above, it is evident and it requires no elaboration to conclude that services provided by the applicant both within and outside India in the form of advertising, marketing promotion, sales programme and special services and other programmes for which payments are made by the owner, would amount to rendering managerial and consultancy services and therefore the requirements of the said definition of FTS are satisfied. In the li....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Assessing Officer (AO) has failed to pass the order giving effect to the direction in Commissioner of Income Tax (Appeals) [CIT(A)] order within the period of limitation as provided by the Income-Tax Act, 1961 (the Act). 8. Without prejudice to the above, on the facts and circumstances of the case an in law, the AD has erred in not granting the TDS credit as directed by the CIT(A) within the period of limitation as provided by the Act. 9. On the facts and in the circumstances of the case, and in law, the AD has erred in levying interest amounting to Rs 7,55.562 under section 234A and Rs 47,85,231 under section 2348 of the Act.' 14. During the course of hearing, learned AR wish to not press the additional ground No. 7 raised in the ....