https://www.taxtmi.com/caselaws?id=435520 A counter guarantee arrangement was held materially different from an ordinary independent bank guarantee because the Indian entity performed only limited facilitative functions, while the overseas associated enterprises handled the substantive commercial functions, including credit assessment and arranging the guarantee. Back-to-back protection meant the Indian entity did not bear the default and credit risks normally associated with bank guarantees, so third-party bank guarantee rates obtained under section 133(6) were not reliable comparables for the impugned transaction. Where the assessee's bundled international transactions had already been accepted at arm's length under TNMM in earlier years on identical facts, the transfer pricing adjustment on counter guarantee commission could not be sustained. en-us Fri, 25 Nov 2022 00:00:00 +0530 Wed, 22 Mar 2023 09:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435520 A counter guarantee arrangement was held materially different from an ordinary independent bank guarantee because the Indian entity performed only limited facilitative functions, while the overseas associated enterprises handled the substantive commercial functions, including credit assessment and arranging the guarantee. Back-to-back protection meant the Indian entity did not bear the default and credit risks normally associated with bank guarantees, so third-party bank guarantee rates obtained under section 133(6) were not reliable comparables for the impugned transaction. Where the assessee's bundled international transactions had already been accepted at arm's length under TNMM in earlier years on identical facts, the transfer pricing adjustment on counter guarantee commission could not be sustained. Case-Laws Income Tax Fri, 25 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435520