The Commissioner Of Income Tax - ... vs Shangri-La International Hotel ... on 18 September, 2023

[Cites 5, Cited by 0]

Delhi High Court - Orders

The Commissioner Of Income Tax - ... vs Shangri-La International Hotel ... on 18 September, 2023

Bench: Rajiv Shakdher

                                    $~46 & 49
                                    *    IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +    ITA 532/2023
                                    +    ITA 535/2023
                                                THE COMMISSIONER OF INCOME TAX - INTERNATIONAL
                                                TAXATION -3                          ..... Appellant
                                                             Through: Mr Ruchir Bhatia, Sr Standing
                                                                      Counsel with Ms Deeksha Gupta,
                                                                      ssssAdv.
                                                             versus

                                                SHANGRI-LA INTERNATIONAL HOTEL
                                                MANAGEMENT PTE LTD.                   ..... Respondent
                                                             Through: Mr Manuj Sabharwal, Adv.
                                                CORAM:
                                                HON'BLE MR. JUSTICE RAJIV SHAKDHER
                                                HON'BLE MR. JUSTICE GIRISH KATHPALIA
                                                             ORDER

% 18.09.2023 [Physical Hearing/Hybrid Hearing (as per request)] CM Appl.47914/2023 in ITA 532/2023

1. Allowed, subject to just exceptions.

ITA 532/2023 ITA 535/2023

2. These appeals concern Assessment Years (AYs) 2019-20 [ITA 532/2023] and 2018-19 [ITA 535/2023].

3. In the above captioned appeals, the appellant/revenue seeks to assail a common order dated 28.02.2023 passed by the Income Tax Appellate Tribunal [in short, "Tribunal"].

4. Broadly, the Tribunal, via the impugned order, has ruled that the reimbursement of expenses qua marketing fees, frequent flyer programme, ITA Nos.532/2023 & 535/2023 1/2 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2023 at 21:10:35 frequent guest programme and reservation fees received by the respondent/assessee cannot be treated as fee for technical services, in terms of Article 12(4) of the Indo-Singapore DTAA and under Section 9(1)(vii) of the Income Tax Act, 1961 [in short, "Act"].

5. Concededly, this issue stands covered by the following judgments:

(i) DIT vs. Sheraton International Inc. (2009), 178 Taxmann 84 (Del.)

(ii) CIT vs. Sheraton International Inc. [decided by this court on 11.05.2023 in ITA 271/2023]

(iii) CIT vs. Starwood Hotels & Resorts Worldwide Inc. 2022:DHC:004730.

6. Therefore, according to us, no substantial questions law arises for consideration.

7. The appeals are accordingly closed.

8. Needless to add, since the appellant/revenue has preferred a Special Leave Petition against the judgment rendered by this court in CIT v Sheraton International Inc., parties will abide by the final decision rendered in that case by the Supreme Court.

RAJIV SHAKDHER, J GIRISH KATHPALIA, J SEPTEMBER 18, 2023/pmc Click here to check corrigendum, if any ITA Nos.532/2023 & 535/2023 2/2 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/09/2023 at 21:10:35

Unlock Advanced Research with PRISMAI

Delhi High Court - Orders