Aircraft leasing income not taxable as royalty under India-Ireland DTAA, overrides domestic law.

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....The High Court examined reassessment proceedings involving income from aircraft leasing treated as royalty under the Income Tax Act and India-Ireland Double Taxation Avoidance Agreement (DTAA). The Assessing Officer held the consideration received by the petitioner was royalty for aircraft use, taxable u/s 9(1)(vi) and the DTAA. The Court found the AO's view unsustainable based on a plain reading of Article 12(3)(a) of the DTAA. It opined invoking Section 9(1)(vi) would be impermissible given the DTAA's express exemption, as DTAAs override domestic legislation being more beneficial to the assessee. Accordingly, the reassessment notice u/s 148 was quashed and set aside.....