Treaty exemption for airline technical and ground handling income accepted under the India-Netherlands DTAA.

Income from technical and ground handling services provided to other airlines in India was treated as covered by Article 8(1) read with Article 8(3) of the India-Netherlands DTAA, following earlier decisions in the assessee's own case and the consistent view of the jurisdictional High Court and Tribunal. In the absence of any material factual distinction, the Assessing Officer's addition was not justified, and the treaty exemption claim was accepted with the addition deleted.

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Issues: Whether the income derived from providing technical and ground handling services to other airlines in India was exempt under Article 8 of the India-Netherlands Double Taxation Avoidance Agreement.

Analysis: The issue was held to be covered by earlier decisions in the assessee's own case for preceding assessment years. The income from technical and ground handling services was treated as falling within Article 8(3) read with Article 8(1) of the treaty, and the consistent view of the jurisdictional High Court and the Tribunal was followed. In the absence of any material distinction in facts, the addition made by the Assessing Officer was not justified.

Conclusion: The claim of treaty exemption was accepted and the addition was deleted.

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