Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 575 - AT - Income TaxIndia Netherlands DTTA - Charges received by the assessee from various airlines on account of rendering of ground handling services - whether are covered under article 8 of the Indo- Netherlands Treaty as part of 'operation of aircraft' OR under article 7 of the Treaty - whether these services were rendered under any 'pool' or 'joint' business' in article 8(3) - Held that:- Facts of the year under consideration are identical to the earlier years i.e. AY 2004-05, 2005-06, 2006-07 & 2007-08. In the earlier years, three different Benches of the ITAT, one Bench for AY 2004-05 & 2005-06 and another Bench for AY 2006-07 and third Bench for AY 2007-08, have considered this issue and have arrived at a similar conclusion that the income from ground handling and technical handling services is not chargeable to tax in India. Therefore, no merit in the Revenue's contention that the decision of ITAT for AY 2004-05, 2005-06 and other years requires reconsideration and the matter needs to be referred to the Larger Bench. The issue is squarely covered in favour of the assessee by the above decisions of the ITAT for AY 2004-05 to 2007-08. The Revenue is already in appeal before the Hon'ble Jurisdictional High Court in the earlier years. However, so long as the decision of earlier year is not modified or reversed by the Hon'ble Jurisdictional High Court, ordinarily, the same should be followed by the subsequent Coordinate Bench. Merely because the Revenue is not satisfied with the decision of the ITAT in earlier year would not be a sufficient ground for referring the matter to the Larger Bench. In view of the above, respectfully following the decision of ITAT the income from ground handling and technical handling services is not taxable in India. Accordingly, the assessee's appeal is allowed.
|