The HC partly allowed the appeal, holding that the Tribunal...

The HC partly allowed the appeal, holding that the Tribunal erred in upholding an ALP fixed by equating a corporate guarantee with bank guarantee fees; the Tribunal's reliance on average bank guarantee commissions was set aside and the matter remanded to the Tribunal for fresh adjudication, with directions to consider safe harbour principles and relevant precedent. The HC affirmed the Tribunal's conclusion under s.92B that deferred export receivables may attract transfer pricing adjustment. As to s.14A disallowance, the HC held the assessing officer must first establish applicability of s.14A before invoking Rule 8D(2), and remanded the issue for reconsideration in light of the assessee's audited financials.