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TMI Blog2019 (1) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order dated 05.02.2014 passed by learned Assessing Officer (hereinafter called "the AO") u/s 143(3) read with Section 144C of the Income-tax Act, 1961 (hereinafter called "the Act") for AY 2010-11. 2. The solitary issue involved in this appeal revolves around the determination of arms length price(ALP) u/s 92C of the 1961 Act with respect to commission chargeable by the assessee from its associated enterprises(AE) on international transaction entered into by the assessee within the meaning of Section 92B with its associated enterprises (AE) namely Petroleum Speciality Pte Ltd.(PSPL), a Singapore based company (a wholly owned subsidiary ) , of providing corporate guarantee by the assessee for loans availed by its aforestated AE bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A). This issue has arisen in immediately preceding year i.e. AY 2009-10 in assessee's own case in an appeal filed by the assessee before the tribunal, wherein tribunal was pleased to compute ALP @0.5% of the corporate guarantee given by the assessee's to its AE namely PSPL,Singapore on loans availed by the said PSPL,Singapore, vide orders in ITA No.956/Mum/2015 dated 04.05.2018( to which one of us namely Judicial Member was member of the Division Bench who passed the said order) passed by ITAT, Mumbai, wherein tribunal held as under: "1. The captioned appeal by assessee for Assessment Year [AY] 2009-10 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-15 [CIT(A)], Mumbai, Appeal No.CIT(A)-15/Curr.105/14-15 date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us. 3. The Ld. Authorized Representative for assessee [AR] placing reliance on various decisions of the Tribunal submitted that corporate guaranteewas not an international transaction within the meaning of Section 92B and therefore, no adjustment thereof was required. The Ld. AR, in the alternative, submitted that the impugned addition may be restricted to 0.495% as enjoyed by the assessee from its bankers. Per Contra, Ld. DR drew attention to various decisions where the additions has been upheld by the judicial authorities. 4. We have heard carefully heard the rival contentions and perused relevant material on record. In our opinion corporate guarantee provided by the assessee brought certain benefits to its AE by way of credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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