THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. SHANGRI-LA INTERNATIONAL HOTEL MANAGEMENT PTE LTD.

$~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

O R D E R %

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 27/03/2026 at 12:32:19

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.