Court held that the Tribunal has not examined the applicability of DTAA and service agreement .As there was no discussion in the orders of the Tribunal whether the payments made under the technical support agreement or the crew lease agreements were not payments for technical services, apart from an a priori assumption that the question of taxation did not arise if there was no permanent establishment. Accordingly the orders were set aside and remanded to Tribunal .
DIT (Inv) v. Modiluft Ltd. (2018) 404 ITR 228/ 255 Taxman 481/ 169 DTR 289 / 2020) 314 CTR 282(Delhi) (HC)/DIT v. Royal Airways Ltd (2018) 404 ITR 228 / 255 Taxman 481 / 169 DTR 289 / (2020) 314 CTR 282 (Delhi) (HC)
S. 9(1)(vii):Income deemed to accrue or arise in India – Fees for technical services – Services of Crew under separate agreement – Matter remanded to Tribunal -DTAA -India- Germany [ S. 10(15A),Art, 111]