2010 (12) TMI 1231

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..... in holding that no income accrues / arises or is deemed to accrue/arise in india for the payments which are remitted to the assessee on account of cruise tickets booked by its Indian agent, ignoring the fact that the entire sale proceeds collected by its Agent, M/s Star Cruises (India) Travel Services Pvt. Ltd. were received in India on behalf of the assessee and belonged to it. 2. The appellant prays that the order of the learned CIT(A) on the above ground be set aside and that of the Assessing Officer restores. 3. Briefly the facts of the case are that the assessee, a foreign company, has entered into an agreement with Star Cruise (India) Travel Service Pvt. Ltd., which is an Indian company, for selling their cruise tickets for pro .....

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..... hat there is no dispute that the appellant company is not carrying out any business operation other than the sale of tickets and marketing of sale of tickets through its sole name agent SCTS in India. The Indian Company is being remunerated at arm s length for the services rendered it. In view of the adequate remuneration paid to the sole selling agent, and the sale being made on principal to principal basis and contract of sale having been outside India. It was held by my learned predecessor that Circular No. 23 of the CBDT was squarely applicable and no more income accrues or arises to the appellant in India. 1.3 I have perused this order and I am in agree with my predecessor. It is therefore held that no income accrues or arises to th .....

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..... essee in India on the sale of tickets/booking of cruise tour packages which was done through Star Cruises (India) Travel Services Pvt. Ltd. (SCITC). Accordingly, the orders of the CIT(A) are upheld in both the assessment years. 7. Since the facts of the case under consideration are identical to that of Assessment years 2001-02 and 2002-03, we respectfully follow the order of ITAT in those years and in the light of that we uphold the order of CIT(A) in holding that no income accrues or arises to the appellant in India regarding the business of sale of tickets through the sole selling agent. Thus, the ground raised by the revenue in this regard is hereby dismissed. 8. Since the Cross Objections raised by the assessee are in support of CI .....

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