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TMI Blog2024 (6) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... - international transactions or not? - HELD THAT:- As in view of the provisions of Section 92B of the Act, the alleged transactions of corporate guarantee with the AE falls in the category of international transactions. Our view is further supported by the judgment of M/s. Redington (India) Limited [ 2020 (12) TMI 516 - MADRAS HIGH COURT] Accordingly, ground raised by the assessee that the alleged transactions is not an international transactions, is hereby dismissed. Calculation of corporate guarantee fee - As we find that this issue has come up before various judicial forums and corporate guarantee fee range of 0.2% to 0.5% has been found to be justified. We find support from the judgment of CIT v. Everest Kento Cylinders [ 2015 (5) TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tailed grounds of appeal on this issue) 6. Disallowance of deduction claimed under section 80JJAA of the Act (Refer our detailed grounds of appeal on this issue) 7. Arbitrary addition of income (Refer our detailed grounds of appeal on this issue) 8. Short grant of Advance Tax Credit (Refer our detailed grounds of appeal on this issue) 9. Short grant of TDS Credit (Refer our detailed grounds of appeal on this issue) 10. Non grant of Foreign Tax Credit under section 91 of the Act (Refer our detailed grounds of appeal on this issue) 11. Erroneous Levy of Interest under section 234B of the Act (Refer our detailed grounds of appeal on this issue) 12. Erroneous Levy of Interest under section 234C of the Act (Refer our detailed grounds of appeal o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cked by a corporate guarantee from the appellant. No income was offered by the assessee towards corporate guarantee fee in terms of Arm s Length Price of the said transactions. The ld. TPO after examining the transactions firstly held that there is an international transaction in the form of corporate guarantee given by the assessee to its SPV i.e. Tega Singapore and calculated corporate guarantee @ 6.96% with regard to the corporate guarantee given to Tega Singapore amounting to Rs. 1,40,68,548/- and addition of Rs. 13,63,534/- towards corporate guarantee to Tega Chile. 7. Before us, the ld. Counsel for the assessee had made two fold contentions. Firstly, contending that the alleged transactions do not fall under the category of internatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urred or to be incurred in connection with a benefit, service or facility provided or to be provided to any one or more of such enterprises. (2) A transaction entered into by an enterprise with a person other than an associated enterprise shall, for the purposes of sub-section (1), be 95 [deemed to be an international transaction] entered into between two associated enterprises, if there exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise, or the terms of the relevant transaction are determined in substance between such other person and the associated enterprise 96 [where the enterprise or the associated enterprise or both of them are non- residents irrespective of whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losses or assets of such enterprises at the time of the transaction or at any future date; 9. Now, from perusal of the explanation to sub-Section (2) of Section 92B, the expression international transaction includes capital financing, include any type of long-term or short-term borrowings, purchase or sale of marketable securities or any type of advance, payments or deferred payment or receivable or any other debt arising during the course of business. Since inclusive definition of international transaction includes the activities relating to capital financing and borrowings, in our view new corporate guarantee transaction also falls under the category of international transactions. In the instant case, undisputedly, the assessee has given ..... X X X X Extracts X X X X X X X X Extracts X X X X
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