Assessee, a tax resident of UAE, entered into two Strategic Oversight Services Agreements (SOSA) with an Indian company in respect of hotel located at Delhi. In terms of SOSA, assessee agreed to provide strategic planning services and know-how to ensure that hotel was developed and operated as an efficient and high quality international full-service hotel and received fee (strategic fee as well as incentive fee) as set out in SOSA. Assessing Officer and Tribunal held that payment received from owner under SOSA was royalty under DTAA as same related to provisions of know-how, skill, experience, commercial information and other intangibles. The Court held that the fee was not a consideration for use of or right to use any process or for information of commercial or scientific experience but was in consideration of providing services as set out in SOSA. Therefore, fee revived by assessee was not royalty under article 12 of DTAA but was in nature of business income. Court also held that in terms of SOSA, assessee agreed to provide strategic planning services and know-how to ensure Hotel was developed and operated as an efficient and high quality international full-service hotel. Order of Tribunal holding that the assessee had a Permanent Establishment (PE) in terms of article 5(2) of DTAA is affirmed. Court observed that  the assessee exercised control in respect of all activities at hotel, inter alia, by framing policies to be followed by hotel in respect of each and every activity, and by further exercising apposite control to ensure that said policies were duly implemented. Admittedly, assessee also performed an oversight function in respect of hotel which was also carried out, at least partially if not entirely, at hotel premises.Since hotel premises were at disposal of assessee in respect of its business activities, Tribunal had rightly held that assessee had a PE in India in form of fixed place through which it carried on its business. (AY. 2009-10 to 2017-18)