Case Law Details
Inter Continental Hotels Group [Asia Pacific] PTE Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that provision of management support services to various hotels in India doesn’t come under Article 12(4) of India -Singapore DTAA. Accordingly, addition unsustainable.
Facts- The assessee has preferred the present appeal contesting that the CIT(A) erred in treating the amount received by the assessee from Inter Continental Hotels Group [Asia Pacific] India Pvt Ltd [IHGAP] towards provision of Management Support Services to be in the nature of Fees for Technical Services [FTS] under Article 12 of the India – Singapore DTAA.
Conclusion- The co-ordinate bench categorically held that the services provided by the assessee do not make available any technical knowledge, skill, know-how to the recipient Inter Continental Hotels Group India Pvt Ltd. Further, in A.Ys 2013-14 and 2014-15, in ITA Nos. 4608/DEL/2019 and 2986/DEL/2019, with respect to taxability of Management Support cost, under Article 12(4)(b) of the DTAA, the co-ordinate bench has held Management Support Services doesn’t come under Article 12(4) of India-Singapore DTAA.
Held that respectfully following the decision of the co-ordinate benches, we direct the Assessing Officer to delete the impugned addition in both the appeals.
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