DCIT (International Taxation), New Delhi V. M/s. Starwood Hotels & Resorts Worldwide Inc., New Delhi

ITA 5143/DEL/2016

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2846 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2012-2013
• Appeal Filed On: 29-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: VI SHAL MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES G , NEW DELHI BEFORE SH. AMIT SHUKLA , JUDICIAL MEMBER DR. B. R. R. KUMAR , ACCOUNTANT MEMBER ITA NO. 5143 /DEL/201 6 : ASSTT. YEAR : 2012 - 1 3 DCIT(INTERNATIONAL TAXATION), CIRCLE - 3(1)(2), NEW DELHI V S M/S STARWOOD HOTELS & RESORTS WORLDWIDE INC., C/O M/S NANGIA & CO., SUITE 4A, PLAZA M 6, JASOLA, NEW DELHI - 110025 (APPELLANT) (RESPONDENT) PAN NO. AAOCS2525F ASSESSEE BY : SH. AMIT ARORA & VISHAL MISHRA, CA REVENUE BY : SH . N. K. BANSAL, SR. DR DATE OF HEAR ING: 28 . 08 .201 9 DATE OF PRONOUNCEMENT: 02 .09 .201 9 ORDER PER DR. B. R. R. KUMAR , A CCOUNTANT M EMBER : THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE L D. CIT(A) - 43 , NEW DELHI DATED 26.07 .2016 . 2. ONLY ONE GROUND HAS BEEN RAISED IN THIS APPEAL: (I) WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT (A) HAS ERRED IN HOLDING THAT THE CENTRALIZED SERVICES FEE RECEIVED BY THE APPELLANT FOR RENDERING VARIOUS SERVICES SUCH AS SALES AND MARKETING, LOYALTY PROGRAMS, RESERVATION SERVICE, TECHNOLOGICAL SERVICE, OPERATIONAL SERVICES AND TRAINI NG, PROGRAM ETC. TO CUSTOMERS IN INDIA, WERE NOT TAXABLE AS FEES FOR TECHNICAL SERVICES (FTS) IN TERMS OF SECTION 9 OF THE INCOME TAX ACT, 1961 AS WELL AS ARTICLE 12 OF THE INDIA - US DOUBLE TAXATION AVOIDANCE AGREEMENT (DTAA). ITA NO . 5143 /DEL /2016 STARWOOD HOTELS & RESORTS WORLDWIDE INC. 2 3. WE FIND THAT THE ISSUE HAS BEEN ALREADY ADJUDICATED IN THE ASSESSEE S OWN CASE FOR THE ASSESSMENT YEAR 2011 - 12 BY THE CO - ORDINATE BENCH OF ITAT DELHI. THE DECISION OF THE CO - ORDINATE BENCH WAS BASED ON THE JUDGMENT OF THE HON BLE JURISDICTIONAL HIGH COURT IN ASSESSEE S OWN CASE THAT THE RECEIPT ON ACCOUNT OF SALES AND MARKETING, LOYALTY PROGRAMMES, RESERVATION SERVICES, TECHNOLOGICAL SER VICES AND OPERATIONAL SERVICES DO NOT CONSTITUTE FEE FOR TECHNICAL SERVICES. HENCE, RESPECTFULLY FOLLOWING, THE ORDERS OF THE CO - ORDINATE BENCH A ND HON BLE HIGH COURT OF DELHI, WE DECLINE TO INTERFERE IN THE ORDER OF THE LD. CIT (A). 4 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . (ORDER PRO N OUNC ED IN THE OPEN COURT ON 02 /0 9 /2019). SD/ - SD/ - ( AMIT SHUKLA ) ( DR. B. R. R. KUMAR ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 02 /0 9 /2019 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITAT ASSISTANT REGISTRAR