2022 (10) TMI 183 - AT - Income Tax

Income accrued in India - Addition of profit of the assessee from providing technical services to other airlines - Whether profit of the assessee from providing technical services to other airlines is covered by Articles 8(1) and 8(4) of the DTAA between India and Germany, and by Articles 8(1) and 8(3) of the DTAA between India and Netherlands? - HELD THAT - We find that the Co-ordinate Bench of this Tribunal in assessee s own case 2022 (6) TMI 1313 - ITAT DELHI for the Assessment Years 2015-16 2016-17 has decided the issue in favour of the assessee.

Summary

Issues:
1. Appeal against orders of Ld. CIT(A)-23, New Delhi for Assessment Year 2013-14.
2. Appeal against orders of Ld.CIT(A)-43, New Delhi for Assessment Year 2014-15.

Analysis - Issue 1: Appeal for Assessment Year 2013-14:
The Revenue appealed against the deletion of profit from providing technical services to other airlines. The Tribunal noted that the issue had been previously decided in favor of the assessee by the Coordinate Bench and the High Court. The High Court had extensively analyzed whether the profits from technical services were covered by the Double Taxation Avoidance Agreement (DTAA) between India and Germany and India and Netherlands. The High Court ruled in favor of the assessee for previous assessment years as well. The Tribunal, following precedent, upheld the order of Ld.CIT(A) and dismissed the Revenue's appeal.

Analysis - Issue 2: Appeal for Assessment Year 2014-15:
In this appeal, similar grounds were raised by the Revenue regarding the deletion of profit from providing technical services to other airlines. The Tribunal found that the facts and grounds were identical to the previous appeal for Assessment Year 2013-14. The arguments presented were the same, and considering the consistent view, the Tribunal affirmed the findings of Ld.CIT(A) and dismissed the Revenue's appeal for this assessment year as well.

In conclusion, both appeals filed by the Revenue against the orders of Ld. CIT(A) for Assessment Years 2013-14 and 2014-15 were dismissed by the Tribunal. The Tribunal upheld the decisions based on the previous rulings in favor of the assessee by the Coordinate Bench and the High Court, regarding the profits from providing technical services to other airlines under the DTAA between India and Germany and India and Netherlands. The consistent view taken by the Tribunal affirmed the findings of Ld.CIT(A) in both cases.