Double Taxation Avoidance Agreement Between India And France

6. Ld. AR submitted that, in accordance with the general rules of the IATP manual, activities covered by „ground maintenance and aircraft recovery equipment” are indicated under „E” and that the „L” mark must be used for line maintenance services at the time of the conclusion of these agreements by member airlines and has been consistently applied and monitored by the air carriers assessed. Everywhere on the agreement and description of the services that are made is that of technical services. It is therefore clear that no „stopover assistance activity” is carried out or carried out by assessee Airlines. The Ld. AR also submitted that only „technical handling services” had been implemented. Local company with AF (HO) as a shareholder and a local Indian company that the other shareholder had given life to a Pvt. Ltd. Co. on behalf and style of Air France Ground Handling India Pvt. Ltd. which was for the purpose and primary purpose of the realization of Ground Handling Activities and not „Technical Handling Activities”.

It was a separate entity, founded in 1956 under the Corporations Act, for handling services that never ended and were subsequently dissolved. The rated airlines provide services per flight. The services offered by the rated airlines differ in quality and coverage and provide facilities such as „storage” for some airlines, „equipment loan” for some airlines that provide „skilled workers” to different airlines, etc. Ld. AR also submitted that the fares charged by the airlines to the recipients of the service were conditional on the number of flights flown, the discount offered because of the number of flights and the establishment of cost-sharing rules, established according to the general rules of the IATP manual. Member airlines calculate, on the basis of the number of flights performed, global flights and the agreement between airlines under the pooling agreement, the current fares, as they can be set by member airlines, and this is not the case when member airlines are not part of the IATP pool by applying different fares. The IATP does not impose fares charged by other member airlines. In 2006/2007, the rating airlines served only one airline, Iberworld, which was not a member airline but had the status of a host airline covered by the IATP pool. Ld. AR also submitted that ad hoc agreements had been reached with Etihad Airlines, Air Canada, Jet Airways, Air India, TNT Airways and Cambata Aviation, etc., the Revenue reports. For example, the airlines with which the contract was concluded with third parties provided technical assistance during the period 2006-2007.

Ld. AR submitted that even ad hoc basic agreements are non-continuous agreements that are concluded for a limited period by member airlines based on requirements and not without agreements.