The Newton's laws hold in an inertial frame. However the equations of motion involve the moment of inertia tensor which in turn depends on the orientation of the body and varies with time. This make it solution to the motion of a rigid body problem impossible. This difficulty is absent in the body fixed axes, the moment of inertia tensor depends only on the the geometry of the problem. So whether we use space axes ,or the body axes, depends on the problem to be solved, we use axes which makes the solution of the problem simpler.
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