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| The Tax Publishers2020 TaxPub(DT) 0115 (Kol-Trib) INCOME TAX ACT, 1961
Section 92B
Corporate guarantee did not amount to international transaction under section 92B. Co-ordinate Benches of Tribunal have also taken into consideration section 92B Explanation with effect from 1-4-2012. Therefore, no ALP adjustment on account of corporate guarantee commission was called for.
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Transfer pricing - International transaction - Corporate guarantee -
TPO suggested ALP adjustment relating to corporate guarantee involving overseas AE of assessee.Held: Corporate guarantee did not amount to international transaction under section 92B. Co-ordinate Benches of Tribunal have also taken into conideration section 92B Explanation with effect from 1-4-2012. Therefore, no ALP adjustment on account of corporate guarantee commission was called for.
Followed:Tega Industries Ltd. v. DCIT (ITA 1912/Kol/2012 dated 21-9-16) : 2016 TaxPub(DT) 5011 (Kol-Trib) & Bharti Airtel Ltd. v. Addl. CIT (2014) 64 SOT 50 (URO) : 2014 TaxPub(DT) 2665 (Mum-Trib)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11 & 2011-12
INCOME TAX ACT, 1961
Section 37(1) Section 40(a)(ii)
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