Held that the collection charges in whatever name called i.e. either discount or commission is nothing but service charges paid, for assessee collecting the UDF and passing it on to AAI and it is held that the collection charges paid by AAI to the assessee cannot be said to be income derived from operation of aircraft and not exempt from tax under Article 8 of DTAA with Germany. Appeal is dismissed. (AY. 2014-15)
Lufthansa German Airlines v. DCIT(IT) (2022) 64 CCH 261 / 95 ITR 17 (SN) / 216 TTJ 958 / 212 DTR 123 (Delhi)(Trib.)
S. 90 : Double taxation relief-Collection charges paid by AAI to the assessee in whatever name called i.e. either discount or commission, is nothing but service charge paid, for assessee collecting UDF (User Development Fees) and passing it on to AAI-Cannot be said to be the income derived from operation of aircraft-Appeal dismissed. DTAA-India-Germany. [Art. 7, 8]