Delhi High Court
The Commissioner Of Income Tax - ... vs Starwood Hotel And Resorts ... on 16 November, 2022
Neutral Citation Number: 2022/DHC/004924
$~41
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ ITA 456/2022
THE COMMISSIONER OF INCOME TAX - INTERNATIONAL
TAXATION -3 ..... Appellant
Through: Mr.Ruchir Bhatia, Sr.Standing
Counsel for the Revenue.
versus
STARWOOD HOTEL AND RESORTS WORLDWIDE INC.
..... Respondent
Through: Mr.Divyanshu Agrawal, Advocate.
th
Through: Date of Decision: 16 November, 2022
CORAM:
HON'BLE MR. JUSTICE MANMOHAN
HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
JUDGMENT
MANMOHAN, J:
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. 2011/Del./2019 for the Assessment Year 2015-16.
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
Signature Not Verified
Digitally Signed By:JASWANT
Signing Date:17.11.2022
19:38:41
Neutral Citation Number: 2022/DHC/004924
Technical Services' as defined under Section 9(l)(vii) of the Income Tax
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 Assessee
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).
Signature Not Verified
Digitally Signed By:JASWANT
Signing Date:17.11.2022
19:38:41
Neutral Citation Number: 2022/DHC/004924
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
order 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 16, 2022
KA
Signature Not Verified
Digitally Signed By:JASWANT
Signing Date:17.11.2022
19:38:41
