TaxTMI 
TaxTMI 
2025 (9) TMI 1671
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....ed to as 'the Act'), for assessment year 2022-23. 2. The assessee in appeal has assailed the assessment order on following two counts: i. Additions made in respect of receipts on account of Marketing, Distribution Marketing, and Frequency Marketing Programme (i.e. IHG Rewards) and SCHI Facility charges accrued to the Appellant from its group entity (i.e. InterContinental Hotels Group (India) Private Limited, amounting to INR 24,07,02,009/- holding it to be Fee for Technical Sevices (FTS) u/s. 9(1)(vii) of the Act and Fee for Included Services (FIS) under Article 12(4)(a) of India-USA DTAA. ii. Addition made in relation to Travel Agent Commission ('TACP') amounting to INR 1,63,44,518/- from third party Indian hotels trea....
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....bunal in AY 1997-98. The Tribunal since then has been consistently holding that marketing, distribution marketing, frequency marketing program and SCHI facility charges are not taxable as royalty or FTS in India. He submitted that the Tribunal in a recent decision in ITA No.3339/Del/2023 for AY 2021-22 decided on 13.06.2024 taking a consistent view has decided the issue in favour of the assessee. 4.1. In respect of ground no. 2 relating to TACP held as FTS/FIS, the ld. AR pointed that the Tribunal in assessee's appeal for AY 2020-21 in ITA No.2335/Del/2023 vide order dated 09.05.2024 held that amount charged by the assessee as TACP for booking hotel rooms for third party cannot said to be in the nature of managerial, technical, or consul....
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....005- 06. These orders of the ITAT were accepted by the tax department and no appeal was filed before Hon'ble High Court. (ii) The AO/DRP in the Assessment order(s) for A.Y. 2006-07 to A.Y. 2011-12 held that Marketing and reservation related receipts is not taxable as 'Royalty'/ 'Fees for Technical Services', following the aforesaid orders of the ITAT. (iii) The Mumbai ITAT in their combined order dated 08 February 2024 for A.Y. 2012-13 to A.Y. 2015-16 again held that Marketing and reservation related receipts is not taxable as 'Royalty'/ 'Fees for Technical Services' under India-USA DTAA and deleted the additions made in the assessment order(s). (iv) The Delhi ITAT in the order dated 10 April 2024 for A.Y. 201617 ....
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....gned assessment year. When facts remain unaltered the principle of consistency demands that relief which has been allowed to the assessee in the past should continue. Accordingly, ground no. 1 of appeal is allowed. 7. The second issue in appeal is with regard to addition in relation to Travel Agent Commission (TACP) amounting to Rs. 1,63,44,518/- from third party Indian Hotels. We find that this issue is also covered by the order of Coordinate Bench in assessee's own case for AY 2020-21 in ITA No. 2325/Del/2023 (supra), wherein the Coordinate Bench after examining the issue and placing reliance on orders of the Tribunal in assessee's own case for preceding assessment years held as under:- "18. At the outset, it was submitted tha....
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....anagerial, technical and consultancy services. 22. It was submitted that the expression 'managerial, technical and consultancy services' have not been defined either under the Act or under the General Clauses Act, 1897. Therefore, the said terms have to be read together with the word 'services' to understand and appreciate their purport and meaning. 23. In this respect the Delhi Tribunal, while interpreting the meaning of FTS as per Explanation 2 of section 9(1)(vii) of the Income tax Act, 1961 held as under: "........A look at the above Explanation shows that it contains a definition of FTS and says that FTS means any consideration for the rendering of any managerial, technical or consultancy serv....
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..... Panalfa Autoelektrik Ltd. [2014] 49 taxmann.com (Delhi High Court) Group Ism (P.) Ltd. 57 taxmann.com 450 (Delhi High Court) CIT (Central) vs. Model Exims [2014] 42 taxmann.com 446 (Allahabad High Court) Le Passage to India Tours and Travel (P.) Ltd. 54 taxmann.com 138 (Delhi ITAT) Dy. CIT vs. Troikaa Pharmaceuticals Ltd. [IT Appeal No. 2028/Ahd./13 and CO No 13/Ahd./14] DCIT vs. Welspun Corporation Ltd. [2017] 77 taxmann.com 165 (Ahmadabad ITAT) Armayesh Global vs. ACIT 45 SOT 69 (ITAT Mumbai) DCIT, Chennai vs. Mainetti (India) (P.) Ltd. [2011] 12 taxmann.com (ITAT Chennai) CLSA Ltd. vs. ITO, (International Taxation) [2013] 31 taxmann.com 5 (ITAT Mumbai) Pah....