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

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ITA - 535 / 2023HC Delhi18 September 20232 pages
For Petitioner: RUCHIR BHATIA
AI SummaryDismissed

What did the High Court hold?

The High Court held that the reimbursement of expenses for marketing, frequent flyer, frequent guest, and reservation fees cannot be treated as fees for technical services. The court noted that this issue was covered by previous judgments.

What were the facts?

The revenue appealed against a Tribunal order holding that reimbursement of marketing, frequent flyer, frequent guest, and reservation fees received by the assessee were not fees for technical services. This issue was related to Assessment Years 2019-20 and 2018-19.

What were the issues?

Whether reimbursement of certain expenses constitutes fees for technical services under the Income Tax Act and the Indo-Singapore DTAA.

Which sections of the Income-tax Act were involved?

Section 9(1)(vii)

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$~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 12:32:40

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

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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 27/03/2026 at 12:32:40

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