Dismissing the appeal of the revenue the Court held that TPO was not justified in treating purachse and sale of shares as loan there by charging interest on notional basis. Court also held that the Tribunal is justified in restricting the addition 1% of gurantee commission as against addition of 5 % of commission by TPO. Followed CIT v. Everest Kento Cylinders Ltd. (2015) 58 taxmann.com 254 (Bom)(HC) (ITA No. 1248 of 2016, dt. 28.01.2019)
PCIT v. Aegis Limited (Bom.)(HC), www.itatonline.org
S. 92C : Transfer pricing–Purchase and sale of shares-TPO was not justified in treting the transaction as loan and charging interest on notional basis–Corporate guarantee–Tribunal is justified in restricting the addition at 1 %of gurantee commission as against addition of at 5% of commission by the TPO. [S. 92B]