9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 1310 - HC - Income TaxTaxability of centralized services fee earned by assessee - Tribunal held it not taxable as fee concerns various aspects such as sales and marketing loyalty programs reservation service technological service operational service and training programs/human resources - HELD THAT - Tribunal has noted that the issue stands covered by the judgment of the coordinate bench in the case of Sheraton International Inc. 2009 (1) TMI 27 - DELHI HIGH COURT As in the assessee s case for other AYs the coordinate bench has followed the same approach i.e. accepted the ratio of the judgment in Sheraton International Inc. No substantial question of law arises for our consideration. The appellant/revenue has preferred an appeal qua the judgment rendered by the Division Bench of this Court in Sheraton International Inc. it is made clear that if the appellant/revenue were to succeed in the said matter parties will abide by the final decision rendered by the Supreme Court.
Issues involved:
The judgment concerns appeals related to Assessment Year 2014-15 and 2015-16 challenging the order of the Income Tax Appellate Tribunal regarding the taxability of centralized services fee earned by the respondent/assessee. Issue 1: Taxability of centralized services fee The Tribunal held that the centralized services fee earned by the respondent/assessee, covering various aspects like sales and marketing, loyalty programs, reservation service, technological service, operational service, and training programs/human resources, is not taxable. This decision was based on the precedent set by the case of Director of Income Tax v. Sheraton International Inc. Decision: The High Court found that no substantial question of law arises for consideration, given the Tribunal's reliance on the Sheraton International Inc. judgment in similar cases for other Assessment Years. Consequently, the appeals were closed. However, it was clarified that if the appellant/revenue succeeds in an appeal against the Sheraton International Inc. judgment at the Supreme Court level, the parties will abide by the final decision rendered by the Supreme Court.
|
