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2018 (8) TMI 1816 - AT - Income TaxTP Adjustment - classification of corporate guarantee as international transaction - HELD THAT:- No transfer pricing adjustment is to be made in case of no diversion of profits out of India. The flagship company of the assessee has accumulated brought forward losses to the tune of ₹ 290 crores and subsidiaries are also in heavy losses. Therefore, it cannot be said that there was any intention of diversion of profits out of India. Further, we find that the assessee has not incurred any cost in providing corporate guarantee. See BHARTI AIRTEL LIMITED (BHARTI CRESCENT) [2014 (3) TMI 495 - ITAT DELHI] and MICRO INK LIMITED VERSUS ADDITIONAL COMMISSIONER OF INCOME TAX VAPI RANGE, VAPI [2015 (12) TMI 143 - ITAT AHMEDABAD] Thus transfer pricing adjustment on account of corporate guarantee fee made during the years under consideration are bad in law. Respectfully following the decision of the coordinate benches [supra] we direct the Assessing Officer to delete the additions - Decided in favour of assessee
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