https://www.taxtmi.com/caselaws?id=783962 The dominant issues concerned transfer pricing adjustments and disallowances/additions under the IT Act. On SBLC/corporate guarantee, the TPO's external CUP based on bank guarantee commission was held legally inapposite because bank guarantees are not comparable to corporate guarantees/SBLCs and the analysis proceeded on incorrect facts; applying HC precedent affirmed by SC, the assessee's "Other Method" benchmarking was accepted and the adjustment was deleted. On interest on AE loan, CUP using the host-country central bank rate was preferred over LIBOR plus 400 bps, since the AE could borrow locally at comparable rates; interest charged at 3.55% was held at ALP and the adjustment was deleted. On s.68, the assessee proved identity, genuineness, and creditworthiness of an RBI-registered NBFC lender; the addition under s.68 r.w.s. 115BBE was deleted. Deduction u/s 35(2AB) was restricted to DSIR-certified figures. Brokerage on property sale was allowed as transfer expense based on proved services and tax compliance. Under s.14A, disallowance was confined to dividend-yielding investments, partly allowing the ground. en-us Mon, 01 Dec 2025 00:00:00 +0530 Fri, 26 Dec 2025 07:18:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783962 The dominant issues concerned transfer pricing adjustments and disallowances/additions under the IT Act. On SBLC/corporate guarantee, the TPO's external CUP based on bank guarantee commission was held legally inapposite because bank guarantees are not comparable to corporate guarantees/SBLCs and the analysis proceeded on incorrect facts; applying HC precedent affirmed by SC, the assessee's "Other Method" benchmarking was accepted and the adjustment was deleted. On interest on AE loan, CUP using the host-country central bank rate was preferred over LIBOR plus 400 bps, since the AE could borrow locally at comparable rates; interest charged at 3.55% was held at ALP and the adjustment was deleted. On s.68, the assessee proved identity, genuineness, and creditworthiness of an RBI-registered NBFC lender; the addition under s.68 r.w.s. 115BBE was deleted. Deduction u/s 35(2AB) was restricted to DSIR-certified figures. Brokerage on property sale was allowed as transfer expense based on proved services and tax compliance. Under s.14A, disallowance was confined to dividend-yielding investments, partly allowing the ground. Case-Laws Income Tax Mon, 01 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783962