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2016 (9) TMI 1440 - AT - Income TaxTPA - corporate guarantee commission - international transaction in terms with section 92B - Held that:- There is service rendered to A.E. by providing guarantees and therefore, invoking provisions of T.P. does arise on the facts of the case. Since the DRP has also followed its earlier order for the A.Y. 2009-2010, we uphold the finding of the DRP that the corporate guarantee is an international transaction. Thereafter, we also direct the Assessing Officer to adopt rate as 0.53% as corporate guarantee commission as done in the earlier assessment year. Thus, Ground of appeal No.4 is rejected and ground of appeal No.5 is treated as allowed for statistical purposes. Interest on Loans & Advances given by the Appellant to AE - rate of interest - Held that:- We direct the Assessing Officer to re-workout the interest on the loan brought by the assessee to it’s a.E. at LIBOR+ 2.75% as against LIBOR+ 4.75% charged by the Assessing Officer/TPO.
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