TaxTMI 
TaxTMI 
2011 (1) TMI 1457
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....porated under the laws of Netherlands. It is carrying on business of an airline and operates in all major countries of the world including India. The assessee also renders technical handling services to other airlines in India. The payment for these services are settled abroad through IATA clearance system. The AO came to the conclusion that while income earned by the assessee from operation of aircraft in the international traffic for carriage of goods, passenger or mail is not liable to be taxed in India under Article 8 of the Double Tax Avoidance Agreement between Netherlands and India, the receipts from providing technical services to other airlines in India is taxable. Such receipts were quantified at Euro 2369060. After allowing head ....
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....1 In reply, the ld. DR submitted that the position in this regard mentioned in OECD commentary that such receipts are not liable to be taxed in the other Contracting State is not accepted by India. In the earlier order of the Tribunal the position of Indo-German, Indo- Netherlands and Indo-U.K. treaties were considered. The provisions of Indo-UK treaty are wider in nature from Indo-Netherlands treaty. 3.2 In the rejoinder, the ld. counsel pointed out that this issue has been considered on page no.5 of the order of the Tribunal. 4. We have considered the facts of the case and submissions made before us. The issue stands covered in paragraph 10 of the aforesaid order of the Tribunal, in which it has been held that such receipts are not liab....