Lease income held as business profit, not royalty under India–Ireland DTAA without PE

Celestial Aviation Trading 15 Ltd. Vs ACIT (ITAT Delhi) Lease transaction operating in nature, not taxable under Article 11 of India – Ireland DTAA in absence of PE Executive Summary: The Delhi Bench of the Tribunal examined the nature of the lease agreement entered into between the lessors (Assessees) and the lessee. The Tribunal held that the transaction was operating in nature and not financial which results into the rental income being not taxable in India in accordance with Article 8 of the India – Ireland DTAA Facts of the Case: 1. The Assessees namely, Celestial Aviation Tra...