The assessee, a tax resident of USA, had entered into licence agreements with various Indian hotels allowing them the use of trademarks ‘ Holiday Inn’ and ‘Crowne Plaza’ in the business. The Royalty income earned was offered to tax in India. However, the marketing contribution and reservation fees received by the assessee from hotels in India were claimed as not taxable on the basis that the same is in the nature of reimbursement of common expenses. However, while completing the assessment u/s 143(3) rws 144C (3), the AO held it to be part of Royalty and added the same as income of the assessee. The CIT (A) upheld the addition. On further appeal, it was pleaded that the money received on account of marketing contribution and reservation fees were with a corresponding obligation to use it for the agreed purposes. The fund so created was obligated to expend assessment proceeds on behalf of the hotels and the fund’s objective is to be self-funded each year. The report of independent auditor was filed in support thereof. Taking into account orders of the coordinate benches in the case of other assessee as well as assessee’s own case for other assessment years, the Tribunal held that the marketing contribution and reservation fees received by the assessee was not royalty and therefore, the impugned addition was deleted.(AY. 2012-13, 2013-14, 2014-15, 2015-16)