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TMI Blog2023 (4) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus, in our view, the assessee deserves a fair opportunity to contest the issue relating to the determination of ALP of guarantee commission to be charged on provision of corporate guarantee on merits. Since the matter has been remanded by the ITAT for denovo adjudication, giving detailed reasons for remand, therefore, no substantial question of law is involved in the impugned order of the Tribunal. - Income Tax Appeal No. - 71 of 2022, 70 of 2022 - - - Dated:- 18-7-2022 - Hon'ble Surya Prakash Kesarwani And Hon'ble Jayant Banerji JJ. For the Appellant : Suyash Agarwal For the Respondent : Gaurav Mahajan ORDER Heard Shri Divyanshu Agrawal, learned counsel for the appellant and Shri Praveen Kumar, learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho ALP of the corporate guarantee should not be determined by applying the rate of commission charged by banks in similar nature of transactions. Though, the assessee objected to the proposed adjustment by submitting that provision of corporate guarantee cannot be considered as an international transaction under section 92B of the Act, however, rejecting the submissions of the assessee, the TPO proceeded to determine the ALP of the corporate guarantee by applying commission rate of 4.86%. This, resulted in an adjustment of Rs.23.16 crores. The assessee contested the aforesaid adjustment before learned first appellate authority. Being convinced with the submission of the assessee, learned Commissioner (Appeals) held that provision of corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merits of the issue. 9.4 We have considered rival submissions and perused the materials on record. Insofar as the factual position relating to the issue is concerned, there is no dispute that the assessee has provided corporate guarantee in respect of loans availed by certain overseas AEs. From the initial stage itself, the assessee has taken a stand that the provision of corporate guarantee does not fall within the scope and ambit of international transaction as provided under section 92B of the Act. While, the TPO has rejected the aforesaid contention of the assessee and has determined the ALP of guarantee commission, learned Commissioner (Appeals) accepting assessee's submission, has held that provision of corporate guarante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... als) has deleted the adjustment made in relation to provision of corporate guarantee simply on the reasoning that it is not an international transaction. Therefore, he has not considered the issue on merits. On perusal of material on record, we have observed, in course of proceeding before the TPO as well as before learned Commissioner (Appeals), the assessee had advanced detailed submissions on merits contesting the adjustment made on account of provision of corporate guarantee. While the TPO has completely rejected the submissions of the assessee, learned Commissioner (Appeals) did not deal with them as he held that the provision of corporate guarantee is not an international transaction. Thus, in our view, the assessee deserves a fair op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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