TMI Blog2022 (10) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... e in assessment years 2004-05 to 2008-09, the Hon'ble jurisdictional High Court, in judgment [ 2017 (2) TMI 157 - DELHI HIGH COURT] has held that the income derived by assessee from provision of technical and ground handling services to other airlines in India is covered under Article 8(3) of the Tax Treaty, hence, not taxable. Identical view was expressed by the Hon'ble jurisdictional High Court in assessee s own case in assessment years 2009-10 to 2012-13. In the latest order passed by the co-ordinate Bench in assessee s own case in assessment year 2015-16 and 2016-17 [ 2022 (6) TMI 1313 - ITAT DELHI] issue decided in favour of assessee as profits of the assessee from providing technical services to other airlines is covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in international traffic and derives income from providing airservices for the carriage of passenger, freight and mail in international traffic. Besides its normal business of carriage of passenger, freight and mail in international traffic, assessee also derives income from rendering technical and ground handling services to other airlines in India. In so far as Revenue earned from carriage of passengers, freight and mail in international traffic as well as technical and ground handling services provided to other airlines, the assessee claimed them to be exempt under Article 8(1) of India-Netherlands Double Taxation Avoidance Agreement (DTAA). While considering assessee s claim in course of assessment proceedings, though, the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 2016-17. 7. Having considered rival submissions and perused the material on record, it is observed, taxability of income received from technical and ground handling services provided to other airlines is a recurring issue between assessee and the Revenue since assessment years 2004-05 onwards. While deciding the issue for the first time in assessment years 2004-05 to 2008-09, the Hon'ble jurisdictional High Court, in judgment dated 25.01.2017, has held that the income derived by assessee from provision of technical and ground handling services to other airlines in India is covered under Article 8(3) of the Tax Treaty, hence, not taxable. Identical view was expressed by the Hon'ble jurisdictional High Court in assessee s own c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, Hon ble High Court answered the question of law against the Revenue and in favour of the assessee and found no infirmity in the orders of the ITAT. 11. Hon ble High Court subsequently for assessment years 2009-10, 2010-11, 2011-12 2012-13 followed its aforesaid order and decided the issue in favour of assessee. 12. Accordingly, respectfully following the precedent, we uphold the order of ld. CIT (A). 9. There being no material difference in the factual position, in our view, the decision of learned Commissioner (Appeals) on the issue is in conformity with the decision of the Hon'ble jurisdictional High Court and the Tribunal rendered on the issue in the past assessment years, as discussed above. Therefore, we do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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