https://www.taxtmi.com/caselaws?id=794714 Corporate guarantee given to an associated enterprise is treated as a distinct international transaction requiring arm's length benchmarking, and the adoption of a 1% guarantee fee was upheld on the basis of internal comparables and jurisdictional precedent. Bad debt deduction depends on actual write-off in the accounts after the amendment to section 36(1)(vii); the disallowance was deleted because irrecoverability need not be separately proved. For leased assets, the principal component of EMI paid by a lessee remains allowable as revenue expenditure where ownership does not pass to the lessee, and the book treatment as a finance lease does not control the tax result. en-us Mon, 11 May 2026 00:00:00 +0530 Fri, 10 Jul 2026 07:39:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794714 Corporate guarantee given to an associated enterprise is treated as a distinct international transaction requiring arm's length benchmarking, and the adoption of a 1% guarantee fee was upheld on the basis of internal comparables and jurisdictional precedent. Bad debt deduction depends on actual write-off in the accounts after the amendment to section 36(1)(vii); the disallowance was deleted because irrecoverability need not be separately proved. For leased assets, the principal component of EMI paid by a lessee remains allowable as revenue expenditure where ownership does not pass to the lessee, and the book treatment as a finance lease does not control the tax result. Case-Laws Income Tax Mon, 11 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794714