TMI Blog2019 (5) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... f deduction under section 80IB in respect of scrap sales in both the assessment years under appeal. Determination of arm's length price of corporate guarantee fee - Commissioner (Appeals) in restricting the arm's length price of corporate guarantee fee @ 0.5% - HELD THAT:- Commissioner (Appeals) in restricting the arm's length price of corporate guarantee fee @ 0.5% is in consonance with the decision of the Hon'ble Jurisdictional High Court in Everest Kento Cylinders Ltd. [ 2012 (11) TMI 1099 - ITAT MUMBAI] . In various other decisions also, different Benches of the Tribunal following the aforesaid decision of the Hon'ble Jurisdictional High Court have directed the Assessing Officer to determine the arm's length p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee has included the income from scrap sale amounting to ₹ 20,67,157, as income derived from the industrial undertaking for claiming deduction. Similarly, in assessment year 2012 13, the assessee had included scrap sale income of ₹ 36,16,303, for computing deduction under section 80IB of the Act. The Assessing Officer being of the view that income from scrap sale cannot be considered to be a part of the profit and gains from the business, disallowed assessee s claim of deduction under section 80IB of the Act in respect of such income in both the assessment years. The assessee challenged the aforesaid disallowances before the first appellate authority. 4. While considering assessee s appeals on the disputed issue, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully following the decision of the Co ordinate Bench as referred to above, we uphold the decision of the learned Commissioner (Appeals) in allowing assessee s claim of deduction under section 80IB of the Act in respect of scrap sales in both the assessment years under appeal. Grounds are dismissed. 8. The next common issue, as raised in grounds no.2 and 3 in both the appeals, relates to the determination of arm's length price of corporate guarantee fee. 9. Brief facts are, during the assessment proceedings for Assessment Year 2011 12, the Assessing Officer noticed that assessee s AE has taken a term loan from ICICI Bank U.K. PLC, Frankfurt Branch, for which the assessee has provided corporate guarantee. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d upon the observations of the Assessing Officer. 12. The learned Authorised Representative strongly supporting the decision of the learned Commissioner (Appeals) submitted that the Hon'ble Jurisdictional High Court in CIT v/s Glenmark Pharmaceuticals Ltd., 398 ITR 439 (Bom.) following its own decision in Everest Kento Cylinders Ltd. (supra), has held that corporate guarantee fee of 0.5% is reasonable. He submitted, the aforesaid decision of the Hon'ble Jurisdictional High Court has been upheld by the Hon'ble Supreme Court. Thus, he submitted, there is no reason to interfere with the decision of learned Commissioner (Appeals). 13. We have considered rival submissions and perused material on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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