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2011 (5) TMI 577 - AT - Income TaxDTAA - Fee for Included Services('FIS') - License fees of trademark - ssessee maintains a separate fund wherein it receives the marketing and reservation contribution from the hotels worldwide (including hotels in India) - the identical issue of taxability of marketing and reservation contribution fees received by the assessee from the Indian hotels has already been considered by the Tribunal in assessee's own case in A.Y.1997-98 and the Tribunal vide order dated 12-5-2006 in ITA No. 4341/M/2002 held that marketing and reservation fees received by the assessee was with a corresponding obligation to use it for the agreed purposes and it was not an unfettered receipt in the hands of the assessee - Held that: the marketing and reservation charges are not Royalty or FIS and they are in the nature of business income and since the assessee does not have a PE in India, the same are not taxable in India - Decided in the favour of assessee
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