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2022 (7) TMI 628 - AT - Income TaxIncome accrued in India - taxation of payments received by the assessee from Indian hotels pursuant to International Marketing Program and Participation Agreement (“IMPPA’) as fees for technical services - HELD THAT:- The International Marketing Program Participation Agreement (“IMPPA’) was initially entered into between International Hotel Licensing Company SARL (“IHLC’), which is the wholly owned, indirect subsidiary of Marriott International Inc. and Indian hotel owners. Under the IMPPA, IHLC was required to provide international advertising, marketing, promotion and sales program to the Indian hotels. Further, the hotel owner was required to contribute to costs and expenses associated with the international advertising, marketing, promotion and sales program for the Hotel at 1.5% of gross revenues, net of taxes, for each accounting period. The said IMPPA was subsequently assigned to the assessee pursuant to Assignment and Assumption Agreement dated 21/07/2008 entered into between IHLC and the assessee. We find that in the case of International Hotel Licensing Company [2006 (11) TMI 141 - AUTHORITY FOR ADVANCE RULINGS] held that amounts received by the International Hotel Licensing Company SARI. (referred to as the applicant) from the Indian Hotel owner in connection with the marketing and business promotion activities said to be conducted outside India would be taxable in India. In the present case assessee is an assignee of the IMPPA entered into by IHLC with Indian hotels and under the said agreement, assessee rendered similar services as were considered by learned AAR in the aforesaid ruling. Further, no change in facts was alleged in the present case as were considered by the learned AAR in the aforesaid ruling. In view of the above, we find no infirmity in the impugned order passed by the learned CIT(A) following the learned AAR’s ruling in International Hotel Licensing Company Co. (supra). As a result, grounds No. 1 to 5 raised in assessee’s appeal are dismissed. Levy of interest under section 234A - HELD THAT:- Assessing Officer is directed to carry out necessary verification whether the return of income was filed by the assessee within time and levy interest under section 234A of the Act, in case of delay, in accordance with law. Levy of interest under section 234B - No interest under section 234B of the Act is leviable, for the year under consideration the present case, in view of decision of Hon’ble Supreme Court in DIT v. Mitsubishi Corporation [2021 (9) TMI 875 - SUPREME COURT]. In view of above, addition ground No. 9 is allowed for statistical purpose.
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