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2023 (2) TMI 498 - AT - Income TaxTP Adjustment - Rate of corporate guarantee fee - TPO rejected the contention of the assessee that the corporate guarantee was a shareholder activity and treated the same as an international transaction - HELD THAT:- The Tribunal in assessee’s own case for assessment year 2016-2017 [2022 (6) TMI 660 - ITAT BANGALORE] had held that 0.50% of the amount of loan for which the assessee stood as guarantee would be appropriate arm’s length guarantee commission the assessee ought to have earned, and accordingly, restricted the addition of corporate guarantee commission to 0.50% of the total loan amount. Thus we direct the AO / TPO to restrict the rate of corporate guarantee commission to 0.50% of the total loan amount for which the assessee stood as a guarantor. It is ordered accordingly. Interest on outstanding receivables (TP Adjustment) - adjustment on interest on delayed receivables - TPO treated the delayed receivables as international transaction and impugned interest, making TP adjustment - HELD THAT:- The Tribunal by following the assessee’s own case for assessment year 2016-2017 [2022 (6) TMI 660 - ITAT BANGALORE] had restored the matter to the AO / TPO to consider the issue afresh in line indicated by the Tribunal in the order passed for assessment year 2015-2016 [2021 (11) TMI 1076 - ITAT BANGALORE] - Thus AO / TPO is directed to decide the issue afresh in the light of the directions issued by the Tribunal in assessee’s own case for assessment year 2015-2016. Disallowance u/s 14A - HELD THAT:- It is claimed that the assessee had earned exempt income during the relevant assessment year. If the assessee proves that it had not earned any exempt income during the relevant assessment year, no disallowance u/s 14A of the I.T.Act can be resorted to. For examination whether the assessee has earned any exempt income during the relevant assessment year, the matter is restored to the files of the A.O. Appeal filed by the assessee is partly allowed.
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