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2019 (11) TMI 1675

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..... TMI 27 - DELHI HIGH COURT] took the view that the payments for advertising, publicity and the sales promotion services rendered by the assessee, a company incorporated and tax resident in USA to Indian company, was advisement, publicity and sales promotion keeping in mind the mutual interests and in the context, the use of trademark, trade name etc. and other enumerated services referred to in the agreement with the assessee were incidental to main services and, therefore, the payments received were neither in the nature of royalty under section 9(1)(vi) of the Act, Explanation 2, nor in the nature of Fee for Technical Services (FTS) under section 9(1)(vii) of the Act, Explanation 2, but business income and assessee not having any PE in .....

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..... for provision of hotel related services which includes the worldwide publicity, marketing and advertising services through its system of sales, advertising, promotion, public relations and reservations. Pursuant to such agreements it has rendered the services. For the assessment year 2013-14 it has filed its return of income on 30/9/2013 declaring nil income and also claiming a refund of ₹ 56,25,320/-. 3. During the course of assessment learned Assessing Officer found that the assessee received a sum of ₹ 5,51,05,219/- from certain hotel owners for rendering centralised services and it treated the same as Fee for Technical Services (FTS) and brought the same to tax. In appeal, Ld. CIT(A) while following the decision of the Ho .....

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..... of a group concern, namely, Starwood Hotels for the Assessment Year 2010-11, a coordinate Bench of this Tribunal, by order dated 28/9/2017 while following the decision of the Hon ble jurisdictional High Court in Sheraton (supra) held that since the assessee is not having any PE in India, its business income earned is not taxable in India and such a finding is upheld by the Hon ble jurisdictional High Court in ITA 467/2018 by order dated 18/04/2018. He further submitted that a similar view was taken in Starwood Hotels (supra) case for Assessment Year 2011-12 by a coordinate Bench of this Tribunal by order dated 18/12/2018 in ITA No. 203/Del/2016 while referring to the order of the Tribunal for the Assessment Year 2010-11. Lastly, he brought .....

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