TaxTMI 
TaxTMI 
2011 (3) TMI 1837
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....s directed against the order dated 27.8.2009 of CIT(A) for the assessment year 2005-06. The only dispute raised is regarding taxability of marketing and reservation fees received by the assessee. 2. Briefly stated the facts of the case are that the assessee company which is a foreign company resident of USA had entered into agreements with various Indian hotels for use of trademark "Holiday Inn" ....
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.... amount as royalty income. In appeal CIT(A) observed that the observation of the AO that the assessee had developed some secret formula was not supported by any evidence. CIT(A) also noted that in A.Y.1997-98 on identical facts the tribunal vide order dated 12.6.2006 in ITA No.4341/M/2002 had held that such receipts could not be treated as royalty and could also not be taxed as business profit und....
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.... has already been considered by the tribunal in assessee's own case in A.Y.1997-98 and the tribunal vide order dated 12.5.2006 in ITA No.4341/M/2002 held that marketing and reservation fees received by the assessee was with a corresponding obligation to use it for the agreed purposes and it was not an unfettered receipt in the hands of the assessee. The tribunal accordingly held that the receipts ....