engaged crew, technical personnel, engineers and other ground staff and wet-leased the aircrafts to a foreign cargo company. The assessee periodically made payments ... Officer rejected another plea of the assessee that the business of aircraft leasing was carried on outside India. The assessee's alternate plea that
contained in this lease, lessor hereby agrees to lease to lessee and lessee hereby agrees to lease from lessor the aircraft for the lease term ... termination of this lease or expiration of the lease terms.
12.1. general obligation
During the lease term and until the aircraft is returned to lessor
business
operation of aircraft, to acquire an of operation of aircraft or an aircraft
aircraft on lease from Government of a the engine (other than ... provisions shows that payments made for acquisition of an aircraft or an aircraft engine on lease, prior to 1st April, 1996, were exempt from taxation
undermine its place of management; that the leases were dry
operating leases, not finance leases; and that similar
arrangements with lessees in China and Korea ... Whether the leases are to be characterised as
operating leases or finance leases;
(c) Whether the presence of the leased aircraft in India
constitutes
InterGlobe Aviation
Ltd. under an operating lease agreement executed on 18.07.2014. The leased aircraft
was duly registered in the name of the assessee and bill ... upon the assessee to
explain as to why the lease rentals received from leasing of aircraft should not be treated
as equipment royalty under Article
submission that these were genuine dry
operating leases, not finance leases. It observed that the aircraft
were directly acquired from Airbus in 2007, that IndiGo ... aircraft. Since the assessee
is the owner of the aircraft, it is interested in the economic value
of the aircraft at the end of lease
lease. The lease agreements in the
present set of appeals are identical, the findings of the AO holding the lease
agreements as financial lease ... lease is
financial lease and not operating lease. We have already held above in
the preceding paragraph that the nature of lease in the year
classifying the leases as finance leases and hence
the lease income cannot be treated as interest income.
On treating the Aircraft as the Permanent Establishment ... below demonstrates the lease agreement is
an operating lease and not finance lease -
Lessor continues to be the owner of the aircraft
delivery of such aircraft. As per the assessee
the aircraft had been acquired on operating lease basis consequent to
assigning the purchase contract between ... leased aircraft. Complete maintenance of the aircraft was the
absolute responsibility of the lessee. The lessor was interested only
in receiving the basic lease rent
lease is a make believe arrangement, in fact the lease agreement and
period of lease has characteristics of Financial Lease. She pointed that the aircraft ... Bankruptcy Act, 1993 defines financial lease as
under:-
""financial lease" means a lease under a lease agreement of tangible asset, other
than
