THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. SHERATON INTERNATIONAL LLC

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ITA - 200 / 2023HC Delhi05 April 20233 pages
For Petitioner: RUCHIR BHATIA
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the centralized services fee earned by the respondent/assessee is not taxable, following a previous judgment of a coordinate bench in a similar case. The High Court found no substantial question of law arising.

What were the facts?

The appeals concerned centralized services fees earned by the respondent/assessee for Assessment Years 2014-15 and 2015-16. The Income Tax Appellate Tribunal had ruled that these fees were not taxable.

What were the issues?

The key issue was whether the centralized services fee earned by the respondent/assessee was taxable in India. The Tribunal's decision was based on established precedent.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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$~43 & 44 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 197/2023 & CM No.16018/2023

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3

..... Appellant Through: Mr Ruchir Bhatia, Sr Standing Counsel with Ms Priya Sarkar, Jr Standing Counsel.

versus

SHERATON INTERNATIONAL LLC

..... Respondent Through: Mr Divyanshu Agrawal, Ms Pooja Mittal and Mr Vaibhav Niti, Advs.

+ ITA 200/2023 & CM No.16032/2023

THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3

..... Appellant Through: Mr Ruchir Bhatia, Sr Standing Counsel with Ms Priya Sarkar, Jr Standing Counsel.

versus

SHERATON INTERNATIONAL LLC

..... Respondent Through: Mr Divyanshu Agrawal, Ms Pooja Mittal and Mr Vaibhav Niti, Advs.

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

HON'BLE MS. JUSTICE TARA VITASTA GANJU

O R D E R %

05.04.2023 [Physical Hearing/Hybrid Hearing (as per request)] ITA 197/2023 & 200/2023

page 1 of 3 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 13:13:42

CM No.16018/2023 in ITA 197/2023 CM No.16032/2023 in ITA 200/2023

1.

Allowed, subject to just exceptions. ITA 197/2023 ITA 200/2023 2. The above-captioned appeals concern Assessment Year (AY) 2014-15 [ITA No.197/2023] and AY 2015-16 [ITA No.200/2023]. 3. The challenge in these appeals is laid to the common order dated 23.09.2022 passed by the Income Tax Appellate Tribunal [in short, “Tribunal”]. The impugned order has been passed in favour of the respondent/assessee. 3.1 The Tribunal, in short, has held that centralized services fee earned by the respondent/assessee is not taxable. The fee concerns various aspects, such as sales and marketing, loyalty programs, reservation service, technological service, operational service and training programs/human resources. 4. The Tribunal has noted, that the issue stands covered by the judgment of the coordinate bench in the case of Director of Income Tax v. Sheraton International Inc (2009) 178 taxmann 84 (Del). 5. Furthermore, in the respondent/assessee’s case for other AYs, the coordinate bench has followed the same approach i.e., accepted the ratio of the judgment in Sheraton International Inc.

ITA 197/2023 & 200/2023

page 2 of 3

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 13:13:42

6.

In view of the above, according to us, no substantial question of law arises for our consideration. 6.1 Accordingly, the above-captioned appeals are closed. 7. In view of the fact, that the appellant/revenue has preferred an appeal qua the judgment rendered by the Division Bench of this Court in Sheraton International Inc., it is made clear, that if the appellant/revenue were to succeed in the said matter, parties will abide by the final decision rendered by the Supreme Court. RAJIV SHAKDHER, J

TARA VITASTA GANJU, J

APRIL 5, 2023

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ITA 197/2023 & 200/2023

page 3 of 3 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 13:13:42

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