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of <h1>Higher 1.418% guarantee commission adjustment rejected; appellate panel upholds 0.5% corporate guarantee rate for AYs 2012-13, 2013-14</h1> <h3>Rolta India Ltd. Versus Dy. Commissioner of Income Tax, Cen. Cir. 1 (1), Mumbai</h3> ITAT MUMBAI upheld the CIT(A)'s reduction of the corporate guarantee commission to 0.5% for the assessment years in dispute, rejecting the TPO's ... TP Adjustment - corporate guarantee commission - HELD THAT:- We find that the TPO has made adjustment by charging corporate guarantee commission @1.418%, We find that this issue was in dispute in assessment year 2012-13 and 2013-14. In assessment year 2012-13 the CIT (A) following the decision rendered in the case of CIT vs. Everest Kento Cylinders Ltd [2015 (5) TMI 395 - BOMBAY HIGH COURT] restricted the corporate guarantee commission rate to 0.5%. Against the findings of the CIT(A), the Revenue filed appeal before the Tribunal [2018 (9) TMI 1832 - ITAT MUMBAI] - The Co-ordinate Bench upheld the findings of CIT (A) and dismissed the appeal of Revenue. Similarly, in the assessment year 2013-14, the CIT(A) restricted the corporate guarantee commission rate to 0.5%. The Revenue agitated the issue before the Tribunal, [2019 (8) TMI 1930 - ITAT MUMBAI] The Tribunal following its earlier order in assessee's own case for assessment year 2012-13 dismissed this ground of appeal. Appeal against assessment order dated 26/03/2021 passed under section 143(3) r.w.s. 144C(13) of the Income Tax Act. Ground No. 1 (challenge to finding that 'corporate guarantee commission' is an international transaction) was withdrawn and dismissed as not pressed. Ground No. 2 assailed a T.P. adjustment of Rs. 93,33,78,654/- in respect of 'corporate guarantee commission'; the TPO had made an adjustment by charging commission @ 1.418%. The assessee relied on Tribunal orders in its own case for AY 2012-13 (ITA No. 882/Mum/2017, decided 07/09/2018) and AY 2013-14 (ITA No. 5720/Mum/2017, decided 29/08/2019), wherein the CIT(A), following CIT v. Everest Kento Cylinders, 378 ITR 57, restricted the corporate guarantee commission rate to '0.5%' and the Tribunal upheld that restriction. As the facts for the impugned year are identical to the earlier years, the Tribunal allowed ground No. 2 for parity of reasons. Appeal partly allowed.
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