THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 vs. SHERATON OVERSEAS MANAGEMENT CORPORATION

Neutral Citation Number: 2022/DHC/004730 ITA 434/2022 & ITA 435/2022 Page 1 of 3 $~49 & 50 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 434/2022 THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 ..... Appellant Through: Mr. Ruchir Bhatia, Senior Standing Counsel for Revenue. versus WESTIN HOTEL MANAGEMENT LP ..... Respondent Through: Mr. Divyanshu Agrawal, Ms. Ritika Chawla & Mr. Vaibhav Niti, Advocates. + ITA 435/2022 & CM APPL. 47203/2022 (for exemption) THE COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION -3 ..... Appellant Through: Mr. Ruchir Bhatia, Senior Standing Counsel for Revenue. versus SHERATON OVERSEAS MANAGEMENT CORPORATION ..... Respondent Through: Mr. Divyanshu Agrawal, Ms. Ritika Chawla & Mr. Vaibhav Niti, Advocates. % Date of Decision: 04th November, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA Digitally Signed By:JASWANT SINGH RAWAT Signing Date:09.11.2022 20:25:09 Signature Not Verified

Neutral Citation Number: 2022/DHC/004730 ITA 434/2022 & ITA 435/2022 Page 2 of 3 J U D G M E N T MANMOHAN, J (Oral): CM APPL. 47203/2022 (for exemption) in ITA 435/2022 Exemption allowed, subject to all just exceptions. Accordingly, the present application is disposed of. ITA 434/2022 ITA 435/2022 1. Present Income Tax Appeals have been filed challenging the common order dated 29th April, 2022 passed by the Income Tax Appellate Tribunal (‘ITAT’) in ITA No. 2013/Del./2019 for Assessment Year (‘AY’) 2015-16 and ITA No. 2012/Del./2019 for AY 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 Technical Services’ as defined under Section 9(l)(vii) of the Income Tax Act, 1961 or 'Fee for included services’ as defined under Articles 12(4) (a) of the Indo- US DTAA. 3. He states 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. Digitally Signed By:JASWANT SINGH RAWAT Signing Date:09.11.2022 20:25:09 Signature Not Verified

Neutral Citation Number: 2022/DHC/004730 ITA 434/2022 & ITA 435/2022 Page 3 of 3 4. The counsel for the Revenue has not brought anything on record to distinguish the facts of present case with the facts involved in Sheraton International Inc. (supra). 5. Admittedly, this Court in Sheraton International Inc. (supra) has decided the issue involved in the present appeals in favour of the Assessee. 6. Though the judgment of this Court 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 appeals are dismissed being covered by the judgment passed by the learned predecessor Division Bench in Sheraton International Inc. (supra). 7. However, it is clarified that the order passed in the present appeals shall abide by the final decision of the Supreme Court in the Civil Appeal No.3094/2010. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J NOVEMBER 04, 2022/msh Digitally Signed By:JASWANT SINGH RAWAT Signing Date:09.11.2022 20:25:09 Signature Not Verified