When Airlines and Tax Laws Collide: A Case Study on Lufthansa German Airlines v. Department of Income Tax
Welcome back, after a short break, I’m back with a full-fledged blog—this time diving deep into a real-world international tax scenario that perfectly blends law, finance, and strategic thinking Lufthansa German Airlines v. Department of Income Tax Delhi High Court Judgment | 7th October 2002 This landmark judgment by the Delhi High Court is a powerful example of how international taxation principles operate under a Double Taxation Avoidance Agreement (DTAA). It covers critical concepts such as profit attribution , pool arrangements , Permanent Establishment , and treaty interpretation . Case Background Lufthansa German Airlines, a German-based international airline operating flights to and from India, was assessed by the Indian Income Tax Department on certain profits earned through rendering technical and ground handling services under the International Airlines Technical Pool (IATP) arrangement. The dispute centered on whether these profits quali...