TaxTMI 
TaxTMI 
2026 (9) TMI 1798
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....see is a Private limited company primarily engaged in the business of Development, Leasing and Maintenance of commercial Real Estate and related interiors. Return of income for A.Y. 2022-23 filed on 23.10.2023 declaring Nil income after claiming deduction u/s. 80IAB(10) of the Act. Income u/s. 115JB of the Act has been declared at Rs. 26,88,16,708/-. Case selected for scrutiny through CASS for various reasons followed by validly serving notices u/s. 143(2) and 142(1) of the Act. Ld. Assessing Officer on observing that assessee has entered into international transaction, referred the matter to the Transfer Pricing Officer who has subsequently passed order dated 09.01.2025 making upward adjustment of Rs. 37,49,234/- in respect of Corporate Gu....
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....ndependent of and without prejudice to one another. The Appellant submits as under: 1. Final assessment order and Transfer Pricing order are bad in law and are liable to be quashed 1.1. The final assessment order issued under section 143(3) read with sections 144C(13) and 1448 of the Income-tax Act, 1961 ('the Act') by the National Faceless Assessment Centre ('NFAC')/ Deputy Commissioner of Income Tax, Circle 8, Pune ('Ld. AO') pursuant to the directions of the Hon'ble Dispute Resolution Panel (Hon'ble DRP) is bad in law and liable to be quashed. 1.2. The Transfer Pricing Order under section under section 92CA(3) of the Act issued by the Assistant Commissioner of Income Tax, Transfe....
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.... which may happen or may not happen depending upon the contingency of default by the principal-debtor. 2.6. The Hon'ble DRP and the Ld. TPO have erred in law and on facts in making an adjustment towards corporate guarantee fee without conducting a proper benchmarking analysis as required under section 92C of the Act and the relevant Rules, and by arbitrarily applying a rate of 0.5% per annum based on judicial precedents. 3. Short grant of credit of Taxes Deducted at Source The NFAC/Ld. AO have erred in law and on facts in not granting the full TDS credit as appearing in Form 26AS. 4. Erroneous computation of interest under section 244A of the Act The NFAC/Ld. AO have erred in law and on facts....
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....PO applying Corporate Guarantee at 0.5% per annum without conducting proper benchmarking analysis as required u/s. 92C of the Act. So far as the issue relating to short grant of TDS, prayer made for setting aside the issue to the file of ld. Jurisdictional Assessing Officer for necessary verification. 4. On the other hand, ld. Departmental Representative supported the order of ld. Dispute Resolution Panel. 5. We have heard the rival contentions and perused the record placed before us. We observe that during the year under consideration the assessee company along with IDBI Trusteeship Services Limited (the Security Trustee) entered into a Corporate Guarantee Agreement dated 20.12.2021 with EOP REIT which has borrowed certain amount by ....
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....ise is an International Transaction, therefore, the Arms Length Price is to be calculated for such transaction. 7. We further observe that issuing of Corporate Guarantee with entities increase the issuer's risk profile even though there is no explicit cost for such international transaction. Provisions of Guarantee always involve risk and there is service provided to Associate Enterprise increasing its creditworthiness in obtaining loans from the market or through any other financial institutions or other by way of giving Corporate Guarantee. The creditworthiness of the Associate Enterprise is increased by obtaining a loan from the marker or through any other financial institution at a lower interest rate as compared to the rate on stand....
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.... of 0.5% rate for calculating the Corporate Guarantee. We note that the assessee has not applied any method for calculating the Corporate Guarantee Fee as there is no mention about the same in the Transfer Pricing Study Report. We note that as per Rule 10AB, the determination of Arms Length Price in relation to the international transaction shall be the price which has been charged or would have been charged or paid for the same or similar uncontrolled transaction with or between non associated enterprises under similar circumstances. Considering all the facts ld. Transfer Pricing Officer has referred to the judicial precedents including that of judgment of Hon'ble Bombay High Court in the case of Everest Kento Cylinders Ltd. in Income Tax ....