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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 ..... ly Judicial Member was member of the division bench of the tribunal who passed the aforesaid orders for AY 2012-13 . No reasons to deviate from aforesaid orders of the tribunal for AY 2009-10 and 2012-13 taking a consistent view and following the rules of consistency as laid down by Hon’ble Supreme Court in the case of Radhasoami Satsang v. CIT [1991 (11) TMI 2 - SUPREME COURT] we determine ALP of corporate guarantee commission @0.5% on international transaction of providing corporate guarantee by the assessee to its AE namely PSPL, Singapore for availing loans - decided partly in favour of assessee - I.T.A. No.2576/Mum/2015 - - - Dated:- 2-1-2019 - SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding corporate guarantee to PSPL,Singapore for availing loans from banks, vide orders dated 17.12.2013 passed by TPO u/s 92CA(3) of the 1961 Act. The said adjustment to ALP by TPO as determined by the TPO led to assessment order dated 05.02.2014 passed by the AO u/s 143(3) read with Section 144C of the 1961 Act , wherein the AO made addition to the income of the assessee of the aforestated adjustment to ALP of ₹ 1,54,82,741/- as determined by TPO. The assessee contested the said additions before learned CIT(A) without success as learned CIT(A) followed the appellate decision of his predecessor for AY 2009-10. The learned CIT(A) while dismissing the appeal of the assessee for the impugned assessment year 2010-11 came to finding tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -34 on 21/03/2013 u/s 143(3) read with section144C of the Income Tax Act, 1961 wherein the assessee has been saddled with TP adjustment of ₹ 1,66,20,644/- against corporate guarantee as proposed by Ld. Transfer Pricing Officer [TPO] u/s 92CA(3). 2. Facts in brief, qua the same are that the assessee being resident corporate assessee engaged in the business of manufacture of Transformers/Specialty Oils, Conductors and Synthetic Rubber provided corporate guarantee amounting to ₹ 35.46 Crores for one of its AE namely Petroleum Specialty PTE Limited, Singapore [PSPL]to facilitate LC facility by Syndicate bank to its AE. The assessee did not benchmark the same on premise that the underlying liability was contingent in nature and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .com 254] wherein the rate of commission has been adopted @0.5%. Respectfully, following the same, we estimate the impugned additions @0.5% per annum. The Ld. AO is directed to quantity the addition and re-compute the income of the assessee in terms of our above order. 5. Resultantly, the appeal stands partly allowed. We have also observed that tribunal vide orders in ITA No. 1557/Mum/2017 dated 06.06.2018 for AY 2012-13 in assessee s own case has again computed ALP of its international transaction with its same AE namely PSPL , Singapore of providing corporate guarantee on loans availed by its AE wherein ALP of commission on said corporate guarantee was determined at 0.5%. The tribunal while passing aforesaid orders dated 06.06 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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