TaxTMI 
TaxTMI 
2016 (8) TMI 163
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....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/- made by the AO on account of Transfer Pri....
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....EZ 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 provide a guarantee by pledging its shares. However....
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....refore, 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 shares refers to the same transaction. Since the as....
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....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, assessee pledged the shares. The CIT (Appeals) as well....