Delhi High Court
The Commissioner Of Income Tax - ... vs Radisson Hotel Interaction ... on 10 November, 2022
Author: Manmohan
Bench: Manmohan, Manmeet Pritam Singh Arora
NEUTRAL CITATION NUMBER: 2022/DHC/004791
$~37
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 441/2022
THE COMMISSIONER OF INCOME TAX - INTERNATIONAL
TAXATION -3 ..... Appellant
Through: Mr. Ruchir Bhatia, Senior Standing
Counsel for Revenue with Ms.
Mansie Jain, Advocate.
versus
RADISSON HOTEL INTERACTION
INCORPORATED ..... Respondent
Through: None.
% Date of Decision: 10th November, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
JUDGMENT
MANMOHAN, J (Oral):
1. Present Income Tax Appeal has been filed challenging the order dated 29th April, 2022 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 9265/Del./2019 for Assessment Year 2016-17.
2. Learned Counsel for the Appellant states that the ITAT has erred in holding that the entire payments received by the Assessee from its Indian Customers on account of Centralized Services viz. sales and marketing, loyalty programs, reservation service, technological service, operational services and training programs/human resources do not constitute 'Fee for Technical Services' as defined under Section 9(l)(vii) of the Income Tax ITA 441/2022 Page 1 of 3 Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:11.11.2022 18:49:18 NEUTRAL CITATION NUMBER: 2022/DHC/004791 Act, 1961 (the 'Act') or 'Fee for included services' as defined under Articles 12(4) (a) of the Indo-US DTAA.
3. He submits that the ITAT has allowed the appeals of the Assessees following the judgement of this Court in Director of Income Tax v.
Sheraton International Inc (2009) 178 taxman 84 (Del). He, however, states that the said decision of this Court has not been accepted by the Revenue and an appeal has been preferred against the same, which is pending adjudication before the Supreme Court being CA No. 3094/2010.
4. Admittedly, this Court in Sheraton International Inc. (supra) has decided the issue involved in the present appeal in favour of the Assessee. The counsel for the Revenue has not brought anything on record to distinguish the facts of present case from the facts of Sheraton International Inc. (supra) case.
5. Also, this Court vide judgment dated 4th November, 2022 in ITA Nos. 434/2022 and 435/2022 dismissed the appeals of the Revenue arising out of the same common impugned order.
6. Though the judgment of this Court in Sheraton International Inc. (supra) has been challenged and is pending adjudication before the Supreme Court, yet there is no stay of the said judgment till date. Consequently, in view of the judgments passed by the Supreme Court in Kunhayammed and Others vs. State of Kerala and Another, (2000) 6 SCC 359 and Shree Chamundi Mopeds Ltd. Vs. Church of South India Trust Association CSI Cinod Secretariat, Madras (1992) 3 SCC 1, the present appeal is covered by the judgment passed by the learned predecessor Division Bench in Sheraton International Inc. (supra).
ITA 441/2022 Page 2 of 3 Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:11.11.2022 18:49:18NEUTRAL CITATION NUMBER: 2022/DHC/004791
7. Accordingly, no substantial question of law arises for consideration in the present appeal and the same is dismissed. However, it is clarified that the orders passed in the present appeal shall abide by the final decision of the Supreme Court in the aforesaid Civil Appeal.
MANMOHAN, J MANMEET PRITAM SINGH ARORA, J NOVEMBER 10, 2022 msh ITA 441/2022 Page 3 of 3 Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:11.11.2022 18:49:18