Tribunal grants relief to assessee, remits issues for fresh adjudication

The Tribunal allowed both appeals of the assessee for statistical purposes, remitting various issues to the AO/TPO for fresh adjudication. The Tribunal directed specific actions regarding transfer pricing matters, assessment of total income, levying of interest under sections 234B and 234C, and corporate tax issues for AY 2011-12. Relief was granted to the assessee in line with the Tribunal's directions, with the AO/TPO instructed to provide consequential relief as necessary.

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Issues:
1. Assessment of total income under normal provisions of the Act
2. Transfer pricing matters - Adjustment on shareholder corporate guarantee
3. Levying of interest under sections 234B and 234C
4. Corporate tax issues for AY 2011-12

Assessment of Total Income:
The appellant, engaged in IT Enabled Services and BPO, filed returns for AYs 2012-13 & 2011-12. The AO observed international transactions with its AE for corporate guarantee, leading to a TP adjustment proposed by the TPO. The DRP directed the final assessment order, which the appellant appealed. The Tribunal remitted the issue to the AO/TPO for fresh adjudication based on previous decisions, directing the adoption of a specific rate of commission for corporate guarantee.

Transfer Pricing Matters - Adjustment on Shareholder Corporate Guarantee:
The appellant raised grounds challenging the TP adjustment on the shareholder corporate guarantee, arguing it was not an international transaction under Section 92B. The Tribunal, considering previous cases, remitted the issue to the AO/TPO for fresh adjudication, directing the adoption of a specific rate of commission for the corporate guarantee.

Levying of Interest under Sections 234B and 234C:
The issue of levying interest under sections 234B and 234C on TP adjustments was remitted to the AO for consequential relief to the assessee, following the Tribunal's directions.

Corporate Tax Issues for AY 2011-12:
In the appeal for AY 2011-12, corporate tax issues were set aside to the AO for verification of claims and granting relief to the assessee, including the set-off of brought forward losses as directed by the DRP. The AO/TPO was directed to provide consequential relief to the assessee.

In conclusion, both appeals of the assessee were treated as allowed for statistical purposes, with the Tribunal remitting various issues to the AO/TPO for fresh adjudication and providing relief to the assessee as directed.

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