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TMI Blog2019 (3) TMI 2084X X X X Extracts X X X X X X X X Extracts X X X X ..... outset, Learned Counsel for the assessee submitted that identical issue has been decided by the Coordinate Bench of this Tribunal in assessee's own case in ITA. No. 1131/Mum/2015 & ITA. No. 1042/Mum/2015 dated 07.10.2016 following the decision of the Hon'ble Jurisdictional High Court in its own case wherein the T.P. Adjustment made by the Transfer Pricing Officer on account of Corporate Guarantee was deleted by the Tribunal. It has been submitted that the High Court accepting the assessee's transfer pricing report in determining the ALP @ 0.5% applying CUP Method affirmed the order of the Tribunal in deleting the Adjustment made by TPO. 3. Ld. DR fairly submits that that the issue is decided in earlier years by the Tribunal in assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee contended that the assessee did not charge guarantee fee from EKC, China, that as per the transfer pricing regulation of China such a payment was not allowable. He also noticed that the assessee had further given corporate guarantee to CP Industries, USA for borrowing of 45 million USD. 3.1. The TPO found that in the TP report it was submitted that while determining the Arm's Length Price(ALP) at 0.5% the assessee had applied CUP. It was contended that Yes Bank, an independent banker, had provided similar financing arrangement to EKC, India and had charged 0.5% for the said financial arrangement, that internal comparable had been used to determine arms length rate for commission charged by EKC India to EKC Dubai. After consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard the rival submissions and perused the material. We find that the Hon'ble High Court had considered the following question regarding guarantee commission. "3. Whether on the facts and in the circumstances of the case and in law the Hon'ble ITAT "K" Bench Mumbai was right in deleting the addition of Rs. 28,50,353/- on account of TP adjustment on guarantee commission." Upholding the order of the Tribunal, wherein the ITAT had deleted the addition on account of guarantee commission of Rs. 28.50 lakhs, the Hon'ble High Court has held as under :- "...........In the matter of guarantee commission, the adjustment made by the TPO were based on instances restricted to the commercial banks providing guarantees and did not contempla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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