आयकर अपीलीय अिधकरण िद(cid:671)ी पीठ “डी”, िद(cid:671)ी

(cid:373)ी िवकास अव(cid:830)थी, (cid:586)ाियक सद(cid:735) एवं

(cid:373)ी नवीन चं(cid:363), लेखाकार सद(cid:735) के सम(cid:407)

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER &

SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER आअसं.360/िद(cid:671)ी/2025(िन.व. 2022-23)

ITA No. 360/Del/2025(A.Y 2022-23)

Six Continents Hotels, INC.

C/o- BSR & Co. LLP, DLF Building #10, 8^th Floor, Tower-B, DLF Cyber City, Phase II, Gurgaon, Haryana-122002 PAN: AAHCS-7853-B ...... अपीलाथ(cid:7278)/Appellant बनाम Vs.

Deputy Commissioner of Income Tax, Circle 3(1)(2), International Taxation, Civic Centre, Minto Road, Delhi 110002 ..... (cid:7079)ितवादी/Respondent अपीलाथ(cid:7278) (cid:554)ारा/ Appellant by : S/Shri S.K. Aggarwal, Himanshu Aggarwal &

Manan Madan, Chartered Accountants (cid:366)ितवादी(cid:554)ारा Respondent by : Shri Nikhil Kumar Govila, CIT-DR /

सुनवाई क(cid:7409) ितिथ/ Date of hearing : 09/07/2025 घोषणा क(cid:7409) ितिथ/ Date of pronouncement : : 24/09/2025 आदशे /ORDER PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the assessment order dated

26.11.2024 passed u/s. 143(3) r.w.s. 144C(13) of the Income Tax Act,1961(hereinafter referred to as ‘the Act’), for assessment year 2022-23.

2. The assessee in appeal has assailed the assessment order on following two counts:

i. Additions made in respect of receipts on account of Marketing, Distribution Marketing, and Frequency Marketing Programme (i.e. IHG Rewards) and SCHI Facility charges accrued to the Appellant from its group entity (i.e. InterContinental Hotels Group (India) Private Limited, amounting to INR 24,07,02,009/- holding it to be Fee for Technical Sevices (FTS) u/s. 9(1)(vii) of the Act and Fee for Included Services (FIS) under Article 12(4)(a) of India-USA DTAA.

ii. Addition made in relation to Travel Agent Commission (‘TACP’) amounting to INR 1,63,44,518/- from third party Indian hotels treating it as FTS and FIS.

3. Brief facts of the assessee as emanating from records are: The assessee company was incorporated in United States of America and is a tax resident of USA. The assessee/Appellant is part of InterContinental Hotel Group ('IHG'), a global hospitality player. InterContinental Hotels Group (Asia Pacific) Pte Ltd, Singapore ('IHGAP Singapore'), group entity of the Appellant is the economic and beneficial owner of certain IHG brands including 'Holiday Inn', 'Holiday Inn Express' and 'Crowne Plaza'. IHG also has a group entity in India, InterContinental Hotels Group (India) Private Limited, ('IHG India'). Effective 01 April 2019, IHG India has been granted a non-exclusive license by IHG AP Singapore for allowing use of trademark/ brand rights to the third-party Indian hotels The license fee so received by IG India is taxable in their hands as business income.

Assessee is required to provided Marketing, Distribution Marketing, Frequency Marketing Programme and assessee facility related support services (i.e. ‘Marketing and Reservation related services’) in respect of hotels using the group brand name and receives the amount for marketing and reservation services from IHG India.

4. Shri S.K. Aggarwal, appearing on behalf of the assessee submits that both the above additions are legacy issues. In so far addition on account of marketing and reservation fee is concerned, the issue first traveled to the Tribunal in AY 1997-98. The Tribunal since then has been consistently holding that marketing, distribution marketing, frequency marketing program and SCHI facility charges are not taxable as royalty or FTS in India. He submitted that the Tribunal in a recent decision in ITA No.3339/Del/2023 for AY 2021-22 decided on 13.06.2024 taking a consistent view has decided the issue in favour of the assessee.

4.1. In respect of ground no. 2 relating to TACP held as FTS/FIS, the ld. AR pointed that the Tribunal in assessee’s appeal for AY 2020-21 in ITA No.2335/Del/2023 vide order dated 09