Held that interest on loans advanced to Associated enterprise uncontrolled price method adjustment is deleted. Loan advanced from own funds, matter remanded to Assessing Officer for re adjudication. Corporate guarantees are International Transactions, however rate of fees to be determined on the basis of guarantee is obtained from a bank. One half Per Cent. considered appropriate on basis of average rates charged by banks. (AY. 2010-11)
Cadila Pharmaceuticals Ltd. v. ACIT (2024) 115 ITR 51 ((SN)/ 164 taxmann.com 52 (Ahd)(Trib)
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Interest on loans advanced to Associated enterprise uncontrolled price method-Adjustment is deleted-Loan advanced from own funds-Matter remanded to Assessing Officer for re adjudication-Corporate guarantees are International Transactions-Rate of fees to be determined on the basis of guarantee is obtained from a bank-One half Per Cent. considered appropriate on basis of average rates charged by banks. [S.92B]