TaxTMI 
TaxTMI 
2018 (9) TMI 2095
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....a the assessment year 2011-12 by raising the issue that Ld. Dy. Commissioner of Income Tax/AO has failed to appreciate that the income earned from technical handling is duly covered by Article 8 of the Double Taxation Avoidance Agreement between India and Netherland and as such income accruing to assessee during the year under consideration is fully exempt from taxation in India and could not have been brought to tax in India. 2. Briefly stated facts are that the assessee filed its return of income for AY 2012-13 on 28.9.2012 claiming a refund of Rs. 2,23,46,310/- declaring total income of Rs. 540,69,70,840/- and thereafter claiming tax relief on the entire amount, thereby reducing the total income to NIL. The case of the assessee was sel....
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....rcraft anywhere. Therefore, the profit of the assessee from technical handling and ground services would not qualify to be exempt from taxation in India of Article 8 of the DTAA between India and Netherlands and accordingly, held that the amount received by the assessee on account of 'ground and technical handling services' rendered to IATP pool airlines is taxable in India and assessed the income at Rs. 28,78,35,647/- u/s. 144C(13) r.w.s. 143(3) of the Act vide order dated 17.12.2015. Aggrieved with the assessment order dated 17.12.2015, assessee preferred an appeal before us. 3. At the outset, the Ld. A.R. for the assessee submitted that the issue in dispute is squarely covered by the decision of the Tribunal in the assessee's own case f....
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.... years 2004-05 & 2005-06, passed in ITA Nos. 403- 404/Del/2010 dated 19.11.2010 vide para no. 9 to 11 has dealt and decided the identical issue relating handling services and technical handling services rendered by the assessee to other airlines in India in assessee's own case in the following manner:- "9. We have duly considered the rival contentions and gone through the record carefully. The sole issue for our adjudication is whether ground handling services and technical handling services rendered by the assessee to other airlines in India are to be considered part of business of assessee from operation of aircraft in international traffic or they are separate distinct activities. In order to appreciate this issue, the Article 8 availa....
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....he purpose of this Article : (a) profits from the operation in international traffic of aircraft include profits derived from the rental on a bareboat basis of aircraft if operated in international traffic if such rental profits are incidental to the profits described in paragraph 1; (b) interest on funds connected with the operation of aircraft in international traffic shall be regarded as profits derived from the operation of such aircraft and the provisions of Article 11 shall not apply in relation to such interest. 3.The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 1. Profits derived from the operation of aircraft in international traffic....
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....while explaining the meaning of profit from the operation of ships and aircrafts in international traffic has took into consideration, the bye laws of international airlines technical pool (IATP) because this organization authorized its members to share air-crafts pooling, ground handling equipment and manpower all over the world. The ITAT has considered the relevant clauses of IATP manual and thereafter concluded that any receipt received by the assessee due to participation in the pool as provided in IATP manual and also explained in sub article 4 of Indo German DTAA will not be taxable in India under sub-Article 1 of Article 8. In the present appeals, there is no disparity on facts. Ld. DR except raising an argument that ground handling ....