Payment towards leasing/ hiring of equipment doesn’t constitute royalty

Spicejet Limited Vs Addl. CIT (ITAT Delhi)

ITAT Delhi held that payment towards leasing/ hiring of the equipment will not constitute a royalty under the provisions of the India – Netherlands Double Taxation Avoidance Agreement (DTAA).

Facts-

AO noticed an amount of Rs. 1,32,00,000/- was paid to KLM Engineering and Maintenance towards leasing of rotables and repair work. Being of the view that the payment made is in the nature of royalt

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