Aircraft Lease Is Operating Lease Since Ownership Never Transfers: ITAT Delhi

Celestial Aviation Trading 36 Ltd Vs ACIT (ITAT Delhi) Delhi Tribunal confirms operating lease classification applies Article 8 A group of Irish lessors – Celestial Aviation Trading Ltd., & Celestial Sverige Aircraft Leasing Worldwide AB – appealed the AO’s final assessment orders for A.Y.2022‑23. The core issue was whether leases of Airbus aircraft to Indian airline companies were operating leases or financial leases, & whether the resulting income was taxable in India. Operating vs financial lease Assessee maintained that the leases were operating leases: ownership always res...