2016 (8) TMI 163

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....ARKAR, CAVEATOR ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against the judgement of the Income Tax Appellant Tribunal raising following questions for our consideration: "[A] Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in confirming the ld. CIT(A)'s decision to delete the addition of Rs. 3,65,96,000/....

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....m of pledging shareholding of Mundra Port and SEZ Limited owned by the assessee-company. It was noticed that this guarantee was provided for charging any guarantee fees. The assessee was, therefore, put to notice why arm's length guarantee fees should not be computed in relation to this transaction. In response to the notice, the assessee contended that the assessee-company deed intend to prov....

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....ncerning ICICI Bank Limited. This letter may, therefore, have reference to some other transaction. 4. The assessee carried the matter in appeal before the Commissioner. The appellate Commissioner reversed the decision of the Assessing Officer observing that IDBI Trusteeship Ltd is security trustee of ICICI Bank Limited, Singapore and thus, RBI's letter refusing permission for pledge of the ....

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.... intended to pledge its shares for guarantee in favour of an AE, however, such transaction did not go through since the RBI permission, which was needed, was not granted. The TPO ventured in the realm of conjectures when he recorded that despite this refusal, the assessee may have gone through with the pledging of shares, but there is nothing on the record to suggest that despite refusal from RBI,....