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2022 (9) TMI 1455 - ALLAHABAD HIGH COURTTP Adjustment - ALP of corporate guarantee provided to the Overseas Associated Enterprises - Whether or not the ITAT was legally correct in holding that the corporate guarantee provided by the appellant to banks for providing loan to its AE without charging any fee or commission, is an international transaction under Section 92B when the transaction is of such a nature as to have no bearing on profits, income, losses or assets of enterprise? HELD THAT:- While TPO, treating the corporate guarantee as an international transaction, charged guarantee commission at 4.86%. Commissioner(Appeals) accepted the assessee's submission and held that the provision of corporate guarantee in the assessee's own case for the assessment year 2009-10 and 2010-11 came up for consideration before the Tribunal and while deciding the assessment, the matter has been remitted to the Assessing Officer for de-novo adjudication after due and reasonable opportunity of hearing to the assessee. The issue referred for reconsideration has been made in the light of the observation of the Commissioner(Appeals) and it was noticed that the Commissioner(Appeals) did not deal with them, as he held that the provision of corporate guarantee is not an international transaction. The Tribunal, in the current case of 2011-12 of the assessee, having noted the above fact, decided to remit the issue to the Assessing Officer for deciding afresh with similar direction. As the substantial questions of law framed herein relates to the same issue, the Assessing Officer would decide the fate. No substantial questions of law.
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