The assessee Company provided corporate guarantee to its AE without any compensation/fees. Following the decision of the Hon’ble jurisdictional High Court in CIT v Everest Kento Cylinders Ltd. (2015) 378 ITR 57 (Bom.) (HC), the addition has been upheld charging of guarantee commission at the rate of 0.5%. (AY. 2008-09)
Siddhayu Ayurvedic Research Foundation Pvt. Ltd. v. Dy.CIT (2022) 219 TTJ 881 / 218 DTR 113 / 98 ITR 46 (SN) /142 taxmann.com 572 (Mum) (Trib)
S. 92C : Transfer pricing-Arm’s length price-Guarantee commission-Directed to compute TP adjustment at the rate of 0.5 percent.