Westin Hotel Management, LP., Noida V. ACIT, Cirlce-3(1)(2) Int. Taxation, New Delhi

ITA 8668/DEL/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5067 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Appeal Filed On: 05-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘D’, NEW DELHI BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER AND SH. N.K. CHOUDHRY, JUDICIAL MEMBER ITA No.8668/Del/2019 Assessment Year: 2016-17 Westin Hotel Management LP, Nangia and Co. LLP A- 109, Sector-136, Noida- 201304 PAN No.AAAFW9088N Vs ACIT Circle – 3 (1) (2) International Taxation New Delhi (APPELLAN (RESPONDENT) Appellant Sh. Amit Arora, CA Sh. Vishal Misra, CA Respondent Ms. Sapna Bhatia, CIT DR Date of hearing: 21/07/2022 Date of Pronouncement: 21/07/2022 ORDER PER N.K. BILLAIYA, AM: This appeal by the assessee is preferred against the order of the CIT(A)-43, New Delhi dated 28.08.2019 pertaining to A.Y.2016-17 2. The grievance of the assessee read as under :- 2 3 4 3. At the very outset, the counsel for the assessee stated that the substantive issues raised in the grounds of appeal has been considered and decided by this Tribunal in favour of the assessee and against the revenue. 4. The DR fairly conceded to this. 5. We have carefully perused the orders of the authorities below and have duly considered the decision of this Tribunal in ITA No.2013/Del/2019 order dated 29.04.2022. 6. Briefly stated that the facts of the case are that the appellant assessee is a firm incorporated under the laws of 5 United States of America and resident thereof. It is engaged in the business of providing hotel related services in several countries around the world. The assessee is group entity of Starwood. 7. In India the assessee has entered into agreements with various Indian hotels for provision of hotel related services inter- alia worldwide publicity, marketing and advertising services through its system of sales, advertising, promotion, public relations and reservations. 8. During the course of scrutiny assessment proceedings and taking leaf out of the earlier assessment years in respect of the payments received by the assessee for such services the AO observed as under :- 9. The assessment was completed by treating Rs.28875531/- as Royalty and Rs.39,28,87,342/- as FTS/ FIS. 10. The Action of the AO was challenged before the CIT(A) and the CTI(A) was also carried away with the findings given by him in A.Y. 2015-16. The relevant part of the order of the CIT(A) read as under :- 6 “5.1 Ground No.2 & 3 The facts of the present case are similar to the case of the appellant disposed by me earlier for Assessment Year 2015-16, Appeal No.73/2017-18. The principle issue is the taxability of the consideration of Rs. 39,28,87,342 received by the appellant for rendering services to the client hotels to which the license has been granted and taxable royalty is being received on the same. The considerations in the earlier year were also of the same nature and a' similar addition was decided upon by me. The Ground no 2 and 3 in the present appeal are in substance identical to the Ground no 3 of the earlier appeal.” 11. Thereafter the CIT(A) followed the findings given in A.Y.2015-16 as under :- 12. This quarrel was considered by this Tribunal in assessee’s own case in ITA No.2013/Del/2019 for A.Y.2015-16 vide order dated 29.04.2022. The relevant findings of the coordinate Bench read as under :- 7 8 9 10 11 xxxx 12 13. On finding parity of facts, respectfully following the decision of the coordinate Bench (supra) we direct the AO to delete the impugned additions. The appeal of the assessee is accordingly allowed. 14. Decision announced in the open court on 21.07.2022. Sd/- Sd/- (N.K. CHOUDHRY) (N. K. BILLAIYA) JUDICIAL MEMBER ACCOUNTANT MEMBER *NEHA, Sr. Private Secretary* Date:- .07.2022 Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI 13 Date of dictation 21.07.2022 Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for Pronouncement Date on which the fair order comes back to the Sr. PS/ PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which file goes to the Head Clerk. The date on which file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order