TFDAC IRELAND II LIMITED,IRELAND vs. DEPUTY COMMISSIONER OF INCOME TAX INT TAX CIRCLE 4(1)(2) MUMBAI, MUMBAI

ITA 3336/MUM/2026Status: DisposedITAT Mumbai29 June 2026AY 2023-202424 pages
AI SummaryAllowed

What were the facts?

The assessee, an Irish company, leased aircraft to an Indian airline. The Assessing Officer (AO) treated lease rentals as business income attributable to a Permanent Establishment (PE) in India. The Dispute Resolution Panel (DRP) upheld the AO's view.

What did the Tribunal hold?

The Tribunal held that the lease rentals are covered by Article 8 of the India-Ireland Double Taxation Avoidance Agreement (DTAA) and are taxable in Ireland, not India. The Tribunal also found that the MLI and PPT were not applicable.

What were the issues?

Whether lease rentals from aircraft leased to an Indian airline are taxable in India, and if the India-Ireland DTAA benefits, including Article 8, are applicable. The applicability of the Multilateral Instrument (MLI) and Principal Purpose Test (PPT) was also an issue.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144C(13),Section 153,Section 90(1),Section 270A

AI-generated summary — verify with the full judgment below

IN THE INCOME-TAX APPELLATE TRIBUNAL, MUMBAI “I” BENCH, MUMBAI 5th Floor, Kautilya Bhavan, C-41 to C-43, G C/o DMD Advocates 30, Block Bandra Kurla Complex, Bandra Nizamuddin East, New (East), Mumbai, Delhi, Maharashtra- 400051 New Delhi- 110013. PAN/GIR No: AAJCB3564G (Appellant) (Respondent) ITA No. 3576 /MUM/2026 (AY: 2023-24) 5th Floor, Kautilya Bhavan, C-41 to C-43, G C/o DMD Advocates 30, Nizamuddin East, New Block Bandra Kurla Complex, Bandra Delhi, (East), Mumbai, New Delhi- 110013. Maharashtra- 400051 PAN/GIR No: : AAJCB3562A (Appellant) (Respondent) 5th Floor, Kautilya Bhavan, C-41 to C-43, G C/o DMD Advocates 30, Block Bandra Kurla Complex, Bandra Nizamuddin East, New (East), Mumbai, Delhi, Maharashtra- 400051. New Delhi- 110013. PAN/GIR No: : AAJCB3561D (Appellant) (Respondent) SA No.58,59,60 &

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