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2016 (1) TMI 936 - AT - Income TaxTransfer pricing adjustment - bench marking technique - Held that:- The assessee facilitated the acquisition of CII Carbon LLC by RCUSA by lending loan to its wholly owned enterprises. The assessee has taken the decision to make investment in its AE either on share capital or lending loan using its business expediency. Since, it had made the decision to make loan to its AE. By virtue of amendment to section 92B, it is international transaction. Once it is considered as international transaction, it is prudent to make bench marking also in the international arena. Determination of rate of corporate guarantee - Held that:- There is no corporate guarantee commission charged by the assessee. Therefore, we remit this issue to the file of the AO/TPO to determine the ALP of the corporate guarantee by following the judicial precedents, more particularly, the case of Glenmark Pharmaceuticals Vs. ACIT (2013 (11) TMI 1583 - ITAT MUMBAI ). In the result both the assessee’s as well as revenue’s appeal are treated as allowed for statistical purposes.
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