The Department challenged the Tribunal’s decision before the High Court and later the Supreme Court. The matter was remanded to the Tribunal, which remanded the matter to the Assessing Officer for appropriate reference to the Transfer Pricing Officer. On appeal the Court held that the Tribunal’s remand order failed to clarify that the solitary question which remained for consideration was whether the obligation incurred by giving an undertaking of corporate guarantee would amount to an international transaction and, if in the affirmative, the consequential transfer pricing adjustments that may be warranted. The matter was being remanded to the Assessing Officer with the clarification that the remit would be confined to examining whether the undertaking of the obligation in question amounted to an international transaction, to be answered first and at the outset. The question would have to be examined and considered by the Assessing Officer after giving an opportunity of hearing to the assessee. The order of the Tribunal was set aside to such an extent and only after the Assessing Officer came to a conclusion that the corporate guarantee amounted to an international transaction the matter was to be considered and referred to the Transfer Pricing Officer. Since the  principal direction of remit by the Tribunal and a de novo exercise was liable to be undertaken by the Assessing Officer, the order of the Transfer Pricing Officer and the consequent draft assessment order also stood set aside.(AY.2008-09)