2018 (3) TMI 2036

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....section 143(3) r.w.s. 144C(3) of the Income Tax Act, 1961 (in short 'the Act'). 2. In this appeal, the assessee has raised the following Grounds of appeal:- "Based on the facts and circumstances of the case, the Marriott International Inc (the 'Appellant') respectfully submits that the learned Commissioner of Income Tax (Appeals) - 55, Mumbai *the 'CIT(A)'+, has in his order under section 250 of the Income-tax Act, 1961 (the 'Act') erred in disposing the appeal of the Appellant on the following grounds : 1. In not deciding the fundamental issue before himself, namely, whether the Appellant could be subject to tax in respect of the amounts received under the International Sales and Marketing Agreement ('ISMA'); 2. In holding....

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....mited ('V M Salgaocar') and various other decisions relied upon by the Appellant. Further, in not appreciating that in case of V M Salgaocar, same amounts received by the Appellant were held not to be chargeable to tax in India as royalty or fees for included services under the India-US tax treaty; 8. In not considering that MWC is the owner of the 'Marriott' brand and the fact that the Indian hotels are already paying royalty to MWC for the license to use the 'Marriott' brand; 9. In not considering the Appellant's plea that the amounts received under the ISMA are governed by the "principle of mutuality" and hence, cannot be regarded as the Appellant's income; 10. In not appreciating that the amounts....

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....that the receipts under the ISMA are not assessable in the hands of the Appellant since the Appellant was not the owner of the 'Marriott' brand; and 16. In holding that the amounts received by the Appellant from Viceroy Hotels Limited as consideration for certain 'design review' services are similar to the amounts received under the ISMA and taxable in the hands of the Appellant." 3. At the time of hearing, it was a common point between the parties that the disputes raised in this appeal are primarily on same footing as in the Assessment Years 2006-07 to 2009-10 which have since travelled to the Tribunal vide ITA Nos. 1996 & 1997/Mum/2011 & 1270, 1451 & 1452/Mum/2013 dated 14.01.2015. So, however, the plea of learned re....

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....a sum of Rs.63,738/- from Viceroy Hotels Ltd. The contention of the assessee was that the aforesaid receipts are not taxable in India. The stand of the assessee, which has been reproduced by the Assessing Officer in para 6 of the assessment order, reveals that assessee, inter-alia, canvassed that the taxability of ISM contributions received by the assessee must be governed by the principle of mutuality inasmuch as there is complete identity between the contributors to the fund that is being maintained, which is termed as "System Marketing Fund for the Marriott Hotels and Resorts International Hotels System" (the 'MHR Fund'). It was asserted that there was a complete identity between the contributors to the MHR Fund and the participants in t....