AI Insights
This case involves a series of stay applications filed by various aviation leasing companies based in Ireland against the Income Tax Department of India. The applicants argued that the lease rental income received from Inter Globe Aviation Ltd. (Indigo) for leasing aircrafts was not taxable in India under the India-Ireland Double Taxation Avoidance Agreement (DTAA). The Assessing Officer had re-characterized these leases as financial leases and applied the Principal Purpose Test (PPT) post the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), which the applicants contested. The Tribunal consolidated these applications due to the identical set of facts and legal issues involved.
Appeal details
Counselvise Citation
[2025] 140 COUNSELVISE.COM (IT) 39340 (ITAT-DELHI)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Appeal Type
Stay Application
Pronouncement Date
07-03-2025
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
D
Assessment Year
2022-2023
Judgement Text
" आयकर अपीलीय अिधकरण िदʟी पीठ “डी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ एवं एम. बालागणेश, लेखाकार सद˟ क े समƗ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER & SHRI M. BALAGANESH, ACCOUNTANT MEMBER SA No. 104/Del/2025 (Arising out of ITA No. 1071/Del/2025, A.Y 2022-23) Subria Five Ltd, New Delhi PAN: ABFCS4860H ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 97/Del/2025 (Arising out of ITA No. 994/Del/2025, A.Y 2022-23) Kosi Aviation Leasing Ltd, C/o,. DMD Advocate, 10, Nizamuddin, East Delhi PAN:AAICK6199B ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 98/Del/2025 (Arising out of ITA No. 1027/Del/2025, A.Y 2022-23) Hoohly Aviation Leasing Ltd, 32, Molesworth Streen, Dublin-2, Ireland, D02Y512 PAN:AAFCH6609C ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(1)(1), New Delhi ..... ᮧितवादी/Respondent 2 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 105/Del/2025 (Arising out of ITA No. 1072/Del/2025, A.Y 2022-23) Subria Four Ltd, Delhi PAN:ABFCS4857C ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 106/Del/2025 (Arising out of ITA No. 1073/Del/2025, A.Y 2022-23) Subria Three Ltd, New Delhi PAN:ABFCS4856D ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3 (1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 109/Del/2025 (Arising out of ITA No. 1204/Del/2025, A.Y 2022-23) GY Aviation Lease 1902 Co. Ltd, Delhi PAN:AAICG8296M ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 3 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 110/Del/2025 (Arising out of ITA No. 1205/Del/2025, A.Y 2022-23) GY Aviation Lease 1903 Co. Ltd, Delhi PAN:AAJCG6060E ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 111/Del/2025 (Arising out of ITA No. 1206/Del/2025, A.Y 2022-23) GY Aviation Lease 1904 Co. Ltd, Delhi PAN:AAICG8303K ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 112/Del/2025 (Arising out of ITA No. 1207/Del/2025, A.Y 2022-23) GY Aviation Lease 1905 Co. Ltd, Delhi PAN:AAICG8302J ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 4 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 113/Del/2025 (Arising out of ITA No. 1070/Del/2025, A.Y 2022-23) Luni Aviation Leasing Ltd, New Delhi PAN:AAECL5180H ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 114/Del/2025 (Arising out of ITA No. 1157/Del/2025, A.Y 2022-23) Mahi Aviation Leasing Ltd, Delhi PAN:AAOCM3126A ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 115/Del/2025 (Arising out of ITA No. 1156/Del/2025, A.Y 2022-23) Padma Aviation Leasing Ltd, Delhi PAN:AALCP7901M ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent 5 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 116/Del/2025 (Arising out of ITA No. 1158/Del/2025, A.Y 2022-23) DAE9 Ireland Ltd, Delhi PAN:AAJCD0296K ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 117/Del/2025 (Arising out of ITA No. 1161/Del/2025, A.Y 2022-23) Subria Six Ltd, Delhi PAN:ABFCS4858P ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 118/Del/2025 (Arising out of ITA No. 1203/Del/2025, A.Y 2022-23) APTREE AVIATION TRADING 2 CO LTD, IRELAND PAN:AATCA6036A ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent 6 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 119/Del/2025 (Arising out of ITA No. 1199/Del/2025, A.Y 2022-23) Lunar Aircraft Trading Company 10, Delhi PAN:AAFCL1872M ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 120/Del/2025 (Arising out of ITA No. 1198/Del/2025, A.Y 2022-23) Lunar Aircraft Trading Company 7, Delhi PAN:AAFCL1871J ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 121/Del/2025 (Arising out of ITA No. 1208/Del/2025, A.Y 2022-23) GY Aviation Lease 1906 Co. Ltd, Delhi PAN:AAICG8301M ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 7 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 122/Del/2025 (Arising out of ITA No. 1209/Del/2025, A.Y 2022-23) GY Aviation Lease 1907 Co. Ltd, Delhi PAN:AAICG8300L ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 123/Del/2025 (Arising out of ITA No. 1210/Del/2025, A.Y 2022-23) GY Aviation Lease 1908 Co. Ltd, Delhi PAN:AAICG8298F ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 124/Del/2025 (Arising out of ITA No. 1211/Del/2025, A.Y 2022-23) GY Aviation Lease 1909 Co. Ltd, Delhi PAN:AAJCG6087H ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 8 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 125/Del/2025 (Arising out of ITA No. 1202/Del/2025, A.Y 2022-23) Subria Two Ltd, Delhi PAN:ABFCS4861G ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 133/Del/2025 (Arising out of ITA No. 1201/Del/2025, A.Y 2022-23) AWAS 2908 LLC, Ireland PAN:AATCA5015D ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 134/Del/2025 (Arising out of ITA No. 1159/Del/2025, A.Y 2022-23) GY Aviation Lease 1901 Co. Ltd, Delhi PAN:AAICG8399E ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 9 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 137/Del/2025 (Arising out of ITA No. 1160/Del/2025, A.Y 2022-23) Ahar Aviation Leasing Ltd, Delhi, PAN:AAUCA7980N ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 139/Del/2025 (Arising out of ITA No. 1270/Del/2025, A.Y 2022-23) White Oak Aviation (AOE2) Ltd, Ireland PAN:AADCW0290N ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 140/Del/2025 (Arising out of ITA No. 1271/Del/2025, A.Y 2022-23) GY Aviation Lease 101 Co. Ltd, Ireland PAN:AAHCG8986F ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 10 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 141/Del/2025 (Arising out of ITA No. 1272/Del/2025, A.Y 2022-23) GY Aviation Lease 1301 Co. Ltd, Ireland PAN:AAICG8297L ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 142/Del/2025 (Arising out of ITA No. 1273/Del/2025, A.Y 2022-23) GY Aviation Lease 1201 Co. Ltd, Ireland PAN:AAICG3574G ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 143/Del/2025 (Arising out of ITA No. 1274/Del/2025, A.Y 2022-23) GY Aviation Lease 1205 Co. Ltd, Ireland PAN: AAICG8295J ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 11 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 144/Del/2025 (Arising out of ITA No. 1275/Del/2025, A.Y 2022-23) AWAS Aviation Leasing (4294) Ltd, Ireland PAN:AATCA4988M ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 145/Del/2025 (Arising out of ITA No. 1276/Del/2025, A.Y 2022-23) AWAS Aviation Leasing (4433) Ltd, Ireland PAN:AATCA4983A ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 147/Del/2025 (Arising out of ITA No. 1286/Del/2025, A.Y 2022-23) AWAS 5158 Ireland Ltd, Ireland PAN:AATCA5018Q ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent 12 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 148/Del/2025 (Arising out of ITA No. 1288/Del/2025, A.Y 2022-23) Ravi Aviation Leasing Ltd, Ireland PAN:AAKCR8052N ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 149/Del/2025 (Arising out of ITA No. 1289/Del/2025, A.Y 2022-23) Gandak Aviation Leasing Ltd, Ireland PAN:AAICG8528L ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 150/Del/2025 (Arising out of ITA No. 1290/Del/2025, A.Y 2022-23) Gilead Aviation Ireland 1 Ltd, Ireland PAN:AAJCG4985A ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent 13 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 151/Del/2025 (Arising out of ITA No. 1291/Del/2025, A.Y 2022-23) Bereach Aviation Leasing Ltd, Ireland PAN:AAJCB6404F ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)(2), New Delhi ..... ᮧितवादी/Respondent SA No. 152/Del/2025 (Arising out of ITA No. 1292/Del/2025, A.Y 2022-23) DAE 8 Ireland Ltd, Delhi PAN:AAJCD0298H ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-2(2)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 153/Del/2025 (Arising out of ITA No. 1293/Del/2025, A.Y 2022-23) SOTA Aviation Leasing Ltd, Ireland PAN:ABFCS4862F ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(2), New Delhi ..... ᮧितवादी/Respondent 14 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 154/Del/2025 (Arising out of ITA No. 1294/Del/2025, A.Y 2022-23) GAL MSN 4533 & 4954, Ireland PAN:AAICG8529M ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(3)1), New Delhi ..... ᮧितवादी/Respondent SA No. 155/Del/2025 (Arising out of ITA No. 1295/Del/2025, A.Y 2022-23) AWAS 3 Ireland Ltd, Ireland PAN:AAWCA4224D ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent SA No. 156/Del/2025 (Arising out of ITA No. 1296/Del/2025, A.Y 2022-23) AWAS 4 Ireland Ltd, Ireland PAN:AAWCA4223E ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-1(1)1), New Delhi ..... ᮧितवादी/Respondent 15 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 SA No. 158/Del/2025 (Arising out of ITA No. 1350/Del/2025, A.Y 2022-23) Vertical Aviation No. 1 Ltd, CRO: 562519, Dolmen House, 3rd Floor, 4 Earlsfort Terrace, Dublin D 02 E024 PAN:AAFCV8726N ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(1), New Delhi ..... ᮧितवादी/Respondent SA No. 159/Del/2025 (Arising out of ITA No. 1351/Del/2025, A.Y 2022-23) The Milestone Aviation Asset Holding Group No. 25 Ltd, Ireland PAN:AAHCT8009N ...... आवेदक/Applicant बनाम Vs. ACIT, International Taxation, Circle-3(1)(1), New Delhi ..... ᮧितवादी/Respondent आवेदक/Applicant : Shri Sachit Jolly, Senior Advocate with Ms. Anuradha Dutt, Ms. Rashi Khanna, Ms. Disha Jham, Ms. Soumya Singh, S/Shri Devansh Jain, Aditya Rathore, Abhudaya Shankar Bajpai, Hardeep Singh Chawla, Advocates ŮितवादीȪारा/Respondent by : Shri Om Prakash, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 07/03/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : 07/03/2025 16 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: These bunch of 44 Stay Applications by different assessees were listed in different Delhi Benches. The Hon’ble Vice President, Delhi Zone vide order dated 07.03.2025 on request for consolidation by the Counsel for applicants, consoliated the Stay Applications before one Bench. These Stay Applications in the case of respective assessee’s are taken up together as the issues in the respective appeals germinate from identical set of facts and the additions in the respective appeals for AY 2022-23 are identical. 2. Shri Sachit Jolly, Senior Advocate representing the applicants/assessees submits that since these bunch of 44 Stay Applications have identical set of facts, SA No. 104/Del/2025 be taken up as a lead case, hence, the facts are narrated from said Stay Application. The ld. Counsel submits that all the applicants/assessees are based in Ireland and are engaged in the business of leasing Aircrafts. Thus, the assessee(s)/applicant(s) are tax residents of Ireland. The applicants in the instant set of applications have leased aircrafts to a single entity in India i.e. Inter Globe Aviation Ltd. (in short ‘Indigo’) on Dry Operating Lease Basis for a period ranging from 72 months to 120 months. The lease agreement dated 03.08.2015 entered into between the applicant (in lead case) and Indigo is for leasing of an Airbus A320-271N on Dry Operating Lease Basis for a period of 72 months staring from 28.09.2016, which was subsequently amended vide amendment and extension agreements dated 21.09.2022 and 24.01.2023 extending the lease to 120 months i.e. till 27.09.2026. Identical lease agreements have been entered into by the respective assessee(s)/applicant(s) with 17 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 Indigo. Pursuant, to said lease agreement the applicant has received basic rental of Rs.36,51,96,550/-(USD 4,848,600) during the assessment year under consideration. The lease rental income of the applicant is not taxable in India under India-Ireland Direct Tax Avoidance Agreement (in short DTAA). Accordingly, the assessee/applicant filed return of income for the impugned assessment year declaring taxable income as NIL. The assessee/applicant in the return of income filed in Ireland has claimed depreciation on asset i.e. Aircraft and has also offered to tax its income from lease rental. Since, the assessee is having negative income (loss), the assessee was not required to pay any tax during the relevant period in the country of residence either. 3. In the impugned assessment year, the Assessing Officer (AO) has made addition in the hands of the assessee/applicant on two counts; (i) Re-characterization of Dry Operating Lease between the assessee and Indigo as Finance Lease, (ii) Applying Principal Purpose Test (PPT) holding that after insertion of Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), TRC cannot be considered as sufficient basis to claim treaty benefits. 4. In so far as the first issue, the ld. Counsel inter alia submits that the Special Bench of Tribunal in the case of Inter Globe Aviations Ltd. vs. Additional Commissioner of Income Tax reported as 131 taxmann.com 98 (Delhi) 2021 TIOL 1607 ITAT Delhi (SB) i.e. in the case of Indigo, Lessee has been held in nature of Operating Lease and has discarded the stand of Revenue to re-characterize it as Financial Lease. Once the nature 18 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 of lease agreement has been held to be Operating Lease in the hands of lessee, the said lease agreement cannot be re-characterized as Financial Lease in the hands of lessor. If the position has been accepted in the hands of the lessee, the Revenue cannot take a divergent view in the hands of the lessors i.e. the applicants herein. Indigo has been remitting lease rentals to lessors of Aircrafts base in Ireland since 2007 without deduction of tax at source, taking benefit of section 10(15A) of the Act and in some cases Article 12 of India-Ireland DTAA. The nature of ‘lease rent’ has already been examined in the case of Indigo for AY 2007-08 till AY 2022-23. The AO while making assessment in the case of Indigo accepts the fact that Indigo is not the owner of Aircrafts, the ownership is with the lessor and the depreciation on aircrafts is claimed by lessor. Whereas, in the case of lessors i.e. applicants, the DRP/AO have taken diametrically opposite stance asserting that Indigo is the owner of aircrafts. 5. In respect of issue no. 2, the ld. Counsel submits that the AO and the DRP have wrongly placed reliance on MLI to deny the benefit of India-Ireland DTAA. He asserted that the AO and the DRP have failed to take note of the fact that no amendment to India-Ireland DTAA has been notified u/s. 90(1) of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) in this regard. Till the time a specific notification is made u/s. 90 of the Act and amendment is carried out in India-Ireland DTAA, it cannot be said that India-Ireland DTAA carries MLI/PPT clause. Merely for the reason that DTAA with other state which is member of OECD viz. Switzerland/Netherlands/France have such provision, would not mean that the same would apply to India-Ireland DTAA. To support his contention, he placed reliance on the decision of Hon’ble Supreme Court of India in the case of Assessing Officer vs. Nestle SA reported as 458 ITR 756. 19 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 6. The ld. Counsel for the assessee contended that both issues on which additions have been made by the assessee are squarely covered in favour of the assesee by the order of Special Bench of Tribunal and the decision of Hon’ble Supreme Court of India, respectively. Hence, the additions made by the AO in respect of all the assessee(s)/applicant(s) would not sustain. 7. Per contra, Shri Om Prakash representing the department vehemently opposed the Stay Applications and prayed for dismissing the same. The ld. DR contended that if at all Stay Application is to be allowed, the same may be allowed subject to assessee(s)/applicant(s) paying tax equal to 20% of the outstanding demand. However, in so far as the facts narrated by ld. Counsel are concerned, the ld. DR endorsed that facts in the case of all the assessee(s)/applicant(s) are identical. 8. We have heard the submissions made by rival sides. Both sides are unanimous in stating that facts germane to the issues raised in all appeals resulting in demand in assessment year 2022-23 are identical. Thus, the Stay Applications in respect of all the assessee(s)/applicant(s) are decided by this common order. 9. The additions in the case of respective assessees is primarily on two counts i.e.re- characterization of nature of lease i.e. from operating to financial by the AO. It has been contended that lease agreement entered into by the respective assessee(s)/applicant(s) with Inter Globe Aviation Ltd./Indigo are identical and carry identical covenants. All lease agreements are for leasing aircrafts on Dry Operating Lease Basis and at the end of lease period the aircrafts are to be returned back by the lessee to the lessor. It is further contended that in the case of Inter Globe Aviation Ltd. 20 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 i.e. lessee, Special Bench of Tribunal had held that the lease agreement between lessors and the lessee is the nature of operating lease. In so far as the issue of MLI, it has been contended that no amendment has been made in India-Ireland DTAA to that effect and unless necessary amendment is made u/s. 90 of the Act, the assessee(s)/applicant(s) cannot be denied the Treaty benefit. To substantiate this contention reliance is placed on the decision rendered by Hon’ble Apex Court in the case of Nestle SA (supra). Prima facie, we are of considered view that the assessee(s)/applicant(s) have strong case in their favour. Hence, the assessee(s)/applicant(s) deserve the benefit of stay on recovery of outstanding demand in the impugned assessment year. The recovery of outstanding demand is thus stayed for a period of 180 days from the date of this order or till the disposal of appeal, whichever is earlier. 10. The Registry is granted to list these bunch of 42 appeals on 08.05.2025. Since, the date of hearing of appeals has been announced in the open court, issuance of separate notice of hearing to the parties is dispensed with. 11. The assessee if so advised, may file paper book on or before the date of hearing of appeals with an advance copy to the opposite side, in accordance with ITAT Rules. The Revenue if so desires to seek any report from the AO in these appeals, may do so, before the date of hearing. 12. Since, a clear date of hearing has been given for hearing of appeals, both sides are refrained from seeking adjournment. In case adjournment is sought by the 21 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 assessee(s)/applicant(s), the benefit of stay granted shall be deemed to be withdrawn forthwith. 13. Before parting, we may point here that any observation in the order may not be construed in any manner as comments on merits of the issue in appeal. The appeal order may be passed on merits, uninfluenced by any observations whatsoever in this order by us. 14. In the result, Stay Applications are allowed, in the terms aforesaid. Order pronounced in the open court on Friday the 07th day of March, 2025. Sd/- Sd/- (M.BALAGANESH) (VIKAS AWASTHY) लेखाकार सद˟/ACCOUNTANT MEMBER Ɋाियक सद˟/JUDICIAL MEMBER िदʟी / Delhi, ᳰदनांक/Dated 07/03/2025 NV/- ᮧितिलिप अᮕेिषतCopy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. 22 SA Nos. 97, 98, 105, 106, 109 to 125, 133,134,137,139, 140 to 145, 147 to 154/Del/2025 BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "
