2025 (4) TMI 1087

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed Income Tax Appellate Tribunal [ITAT] in ITA No. 923/DEL/2020 captioned Six Continents Hotels Inc. v. Assistant Commissioner of Income Tax-3(1)(2), International Taxation, New Delhi. The said appeal was preferred by the respondent [Assessee] against an order dated 17.12.2019 passed by the Commissioner of the Income Tax (Appeal)-43, New Delhi [CIT(A)] in respect of Assessment Year [AY] 2016-17. 2. The Assessee had during the Financial Year [FY] 2015-16 received a sum of Rs. 28,63,07,265/- which comprised of marketing contribution of Rs. 9,39,39,599/; Priority Club receipts amounting to Rs. 9,84,77,567/-; Reservation Contribution amounting to Rs. 5,03,12,004/-; and the Holidex fee amounting to Rs. 4,35,78,095/- from various Indian hotels....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....me Tax Act. The section 9 clearly states that consideration for any service which maybe of the nature of marketing or consultancy services are taxable as FTS. The ancillary and subsidiary nature of services are referred to in the definition of royalty under the domestic legislation. The said services are therefore taxable as ancillary service within the definition of royalty under the Act also." 5. Whilst the Revenue did not appeal the said decision, the Assessee carried the matter in appeal before the learned ITAT. The said appeal was allowed by the learned ITAT following the decision in the Assessee's case in the earlier assessment years. To be noted that the Assessee's contention that the receipts, as mentioned above, are not taxable ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....se, which has been accepted by the Revenue. He has also drawn the attention of this Court to the finding of the learned ITAT in the impugned order to the effect that a similar view, in the Assessee's own case in respect of earlier assessment years (AYs), has been accepted and not appealed by the Revenue. He has also handed over a tabular statement showing that no appeal was preferred in respect of the decision of the learned ITAT in respect of AYs 1997-98, 2002-03 to 2005-06 as well as AYs 2012-13 to 2015-2016. In addition, it is stated that the Assessing Officer had for the AYs 2002-03 and 2006-07 to 2011-12 accepted the Assessee's contention. 4. The learned counsel appearing for the Revenue seeks time to examine the decisions in ....