ETHIOPIAN AIRLINES GROUP,EHIOPIA vs. ACIT INT. TAXATION CIRCLE-1(2)(2), DELHI

ITA 2200/DEL/2024Status: DisposedITAT Delhi05 June 2025AY 2016-1715 pages
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What did the Tribunal hold?

The Tribunal held that the income received by the assessee was not business income as there was no substantial economic connection or a "business in" India. The nature of the transaction was considered passive income, not FTS as defined.

What were the facts?

Ethiopian Airlines Group (assessee) provided flight simulator and pilot training services to an Indian entity (FSTL) through its UAE affiliate. The assessee received revenue for these services, which were treated as fees for technical services (FTS) by the Indian tax authorities.

What were the issues?

Whether the revenue derived from pilot training services rendered by a non-resident to an Indian entity constitutes fees for technical services (FTS) taxable in India.

Which sections of the Income-tax Act were involved?

Section 9(1)(vii),Section 115A,Section 147,Section 143(3)

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCH: D NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI S. RIFAUR RAHMAN

For Appellant: CA Sh. P.K. Sahu, Adv
Hearing: 13.03.2025Pronounced: 05.06.2025

PER SATBEER SINGH GODARA, JM These assessee's twin appeals ITA Nos.2200 & 2201/Del/2024; for assessment years 2016-17 and 2017-18, arise against Assistant Commissioner of Income Tax [in short, the “ACIT”], Circle- International Taxation-1(2)(2), New Delhi's as many assessments; framed on 06.03.2024 and 08.03.2024, having DINs & Letter Nos. ITBA/COM/F/17/2023-24/1062121507(1) and ITBA/COM/F/17/2023-24/1062123964(1); respectively, involving proceedings under section 147 r.ws.143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act').

2.

Heard both the parties at length. Case files perused.

3.

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