BRITISH AIRWAYS PLC vs THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE (INT. TAX) 1(1)(2), NEW DELHI & ANR.

Judgment text excerpt

$~73 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 17.02.2026 + W.P.(C) 18856/2025 BRITISH AIRWAYS PLC .....Petitioner Through: Mr. Vishal Kalra, Mr. Anil Kumar and Mr. S.S. Tomar, Advs. versus THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE (INT. TAX) 1(1)(2), NEW DELHI & ANR. .....Respondents Through: Mr. Anurag Ojha, SSC CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT DINESH MEHTA, J. (ORAL) 1. The instant writ petition impugns the order dated 25.09.2025 (purported to be dated 01.08.2025) so also the certificate dated 25.09.2025 (annexure P-2 and P-1 respectively), whereby a certificate at the rate of .1% has been issued under Section 197 of the Income Tax Act, 1961 (hereinafter referred to as „the Act of 1961‟). 2. As per the facts pleaded, petitioner-British Airways PLC is a company and a tax resident of the United Kingdom as per Tax Residency Certificate issued by UK authorities. The disputed services fall under Airline services, which are essentially “Operation of Airline & Cargo Service” which is exempted under Article 8 of the India-UK Double Taxation Avoidance Agreement (hereinafter referred to as „the India-UK Treaty‟) W.P.(C) 18856/2025 Page 1 of 5 Signature Not Verified Signed By:PRAMOD KUMAR VATS Signing Date:20.02.2026 15:38:12 read with Section 90 of the Act of 1961. 3. Learned counsel for the petitioner at the outset submitted that so far the „operation of airline and cargo services‟ is concerned for the last sixteen years, a certificate of „NIL‟ rate is being issued to the petitioner by the competent authority. Even for the earlier part of the present Financial Year (2025-26) when the petitioner moved an application for issuance of certificate in relation to the transactions which were to the tune of ro