2021 (12) TMI 462

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.... and in the circumstance of the case, the Learned Tribunal fell in error in deleting the addition under section 14A of the Income Tax Act read with Rule 8D(ii) of the income Tax Rules by disregarding that the own funds of the assessee would not merit any distinction as the alternative usage of funds into the main business activity of the assessee which would fetch taxable returns? (ii) Whether on the facts and in the circumstances of the case, the Learned Tribunal fell in error in excluding investment in subsidiaries and consider only such investment that had yielded only dividend income/exempt income for computing disallowance under section 14A of the Income Tax Act read with Rule 8D(iii) of the Rules? (iii) Whether on th....

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....fell in error in disregarding that there was a clear benefit accrued to the Associated Enterprises by the guarantee provided accepted even by the assessee and when such benefit was passed on by the assessee to the AE's, guarantee commission should have been charged at the Arms Length Price?" We have heard Mr. S. N. Dutta, learned standing counsel for the appellant revenue and Mr. J. P. Khaitan, learned senior counsel for the respondent assessee at the admission stage. With regard to the substantial question of law no.(i) is concerned, the decision of the Hon'ble Supreme Court in the case of South Indian Bank Ltd. Vs. Commissioner of Income Tax, reported in [2021] 130 taxmann.com 178(SC) is against the revenue. Following the sa....

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....the Rules? (ii) Whether on the facts and in the circumstances of the case, the Learned Tribunal fell in error in reversing the order passed by the Assessing Officer and upheld by the Dispute Resolution Panel holding that providing corporate guarantee by the assessee to its Associated Enterprise for the purpose of business amounts to international transaction as per the explanation to section 92B of the Income Tax Act and rightly applied the Arms Length Method (ALP) fixing the guarantee fee rate at 3%? (iii) Whether the Learned Tribunal committed substantial error of law in deletion of the addition of Rs. 2,56,49,228/- made by the Assessing Officer by holding that guarantee fee rate of 3% to the Arms Length for marking the ....