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2019 (1) TMI 1841 - AT - Income TaxTP Adjustment - computation of Arm Length Price [ALP] of certain Corporate Guarantee given by assessee for its Associates Enterprises [AE] - only point urged during hearing by Ld. Authorized Representative for assessee [AR], Shri Hiro Rai, is that the ALP of the same should be computed @0.5% in terms of ratio of decision of this Tribunal rendered in Everest Kanto Cylinders Ltd. [2012 (11) TMI 1099 - ITAT MUMBAI]. HELD THAT:- TPO, adopting a rate of 2% pa., arrived at ALP of the same, based on number of days for which the CG remained in force. The adjustment thus worked out to ₹ 66.37 Lacs which was incorporated in the assessment order dated 24/04/2015. Upon further appeal, Ld. CIT, in terms of judgment of this Tribunal rendered in Glenmark Pharmaceuticals Ltd. [2013 (11) TMI 1583 - ITAT MUMBAI], reduced the same to 0.98%. Still aggrieved, the assessee is in further appeal before us. Upon due consideration of factual matrix, we find that since the decision of this Tribunal rendered in Everest Kanto Cylinders Ltd. Vs. DCIT [2012 (11) TMI 1099 - ITAT MUMBAI] in estimating the CG @0.5% has already been affirmed by Hon’ble Bombay High Court, we reduce the same to 0.5% per annum. The Ld. AO is directed to recompute the impugned addition in terms of this order. The appeal stands partly allowed.
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