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2023 (8) TMI 367 - AT - Income TaxTP adjustment - ALP for Corporate Guarantee Commission - HELD THAT:- Relying on the decision of Everest Kanto Cylinder Limited, [2012 (11) TMI 1099 - ITAT MUMBAI] as consistently considered 0.50% as ALP for benchmarking the Corporate Guarantee Commission issued to the Associated Enterprises [AEs]. Thus we are of the considered view that the ALP for Corporate Guarantee Commission shall be benchmarked @ 0.50% of the Corporate Guarantee issued to the AEs. We therefore direct the Ld. TPO to adopt 0.50% as the Corporate Guarantee Commission and accordingly this issue raised by the assessee in the relevant grounds of appeal is partly allowed. Notional interest on Outstanding Guarantee Commission - HELD THAT:- We find merit in the argument of the Ld. AR that the assessee has not indulged in any systematic or organized activity of allowing the undue credit to the AEs. In the light of the facts and circumstances discussed above, we deem it fit and appropriate to consider the alternative plea raised by the Ld.AR in his written submissions and therefore direct the Ld. TPO to adopt the USD LIBOR rate while benchmarking the ALP for the interest on outstanding guarantee commission receivable by the assessee. Accordingly, this ground is allowed for statistical purposes. Notional interest on share application money given to the AEs - HELD THAT:- As nothing brought on record by the Ld. Revenue Authorities to suggest that the transaction was a sham. Therefore judicially following the case of Aegis Limited [2019 (4) TMI 858 - BOMBAY HIGH COURT] we are inclined to delete the addition of notional interest made by the Ld. TPO and hereby direct the TPO to delete the addition made on account of notional interest on the share application money outstanding. We therefore allow the appeal of the assessee on this ground.
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