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2019 (11) TMI 1675 - AT - Income TaxRoyalty receipt - Income taxable in India or not - existence of PE in India - centralised services fee received by the appellant from rendering various services such as sales and marketing, loyalty programs, reservation service, technological services, operational services and training programs etc to customers in India - fees for technical services amounted to royalty under Article 12 of India – US DTAA - HELD THAT:- Revenue does not dispute the fact of the Hon’ble jurisdictional High Court in assessee’s own case reported in Director of Income Tax vs. Sheraton International Inc [2009 (1) 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 India such business income was not taxable in India. - Decided against revenue.
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