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TMI Blog2021 (9) TMI 1393X X X X Extracts X X X X X X X X Extracts X X X X ..... dent upon actually derived income component; whatsoever. Coupled with this, hon ble Madras high court s decision PCIT Vs. M/s.Redington (India) Ltd., [ 2020 (12) TMI 516 - MADRAS HIGH COURT] holds that a corporate guarantee to be an international transaction u/s.92B, Explanation-(c) with retrospective effect from 01-04-2001. We thus, affirm the impugned corporate guarantee adjustment in principle. Quantification of the impugned guarantee - We affirm the impugned adjustment @0.875% as against the assessee s stand that the same ought to be taken as 0.5% only. We therefore partly accept both the learned representatives arguments against and in favour @2% commission in issue to this limited extent. The assessee s instant former substantive grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act']; respectively. Heard both the parties. Case file perused. 2. Coming to the first and foremost issue of correctness of the learned lower authorities' action making corporate guarantee adjustment of Rs.1,52,39,800/- @2% commission rate, learned authorised representative's vehement contention before us is that the assessee has not derived any income since the corresponding corporate guarantee's object was to help the overseas associated enterprise 'AE' which nowhere yielded any returns thereupon. Mr.Prasad therefore submitted that the learned lower authorities ought not to have made any adjustment in view of the foregoing clinching aspect. We express our inability to accept the assessee's instant former substantive grievance. We mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, the addition made by the Assessing Officer is hereby deleted". Therefore, the addition made by the Assessing Officer is deleted". 9.2. It has come on record that the assessee had itself recorded comparable guarantee commission @8.75% i.e. much more than that that decided by the tribunal (supra). We therefore adopt judicial consistency and decline Revenue's instant latter substantive ground for this precise reason alone. We thus affirm the impugned adjustment @0.875% as against the assessee's stand that the same ought to be taken as 0.5% only. We therefore partly accept both the learned representatives' arguments against and in favour @2% commission in issue to this limited extent. The assessee's instant former substantive ground su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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