During relevant year assessee extended corporate guarantee to its AE\u00a0 Assessee, however, did not charge any guarantee commission from AE in respect of said transaction\u00a0 The\u00a0 TPO benchmarked transaction of guarantee commission at rate of 1.25 per cent and, thus, certain addition was made to assessee’s ALP. Tribunal held restricted addition of guarantee commission to 0.50 per cent. During relevant year, assessee advanced certain loan to its AE-Assessee’s case was that it did not charge any interest on said loan due to precarious condition of AE. TPO made certain addition to assessee’s ALP in respect of interest on loan\u00a0 Tribunal held that\u00a0 commercial expediency of loan is wholly irrelevant in ascertaining ALP of interest on said loan advanced to AE. Order of TPO is affirmed.\u00a0 (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arm\u2019s length price-Guarantee commission was to be charged at rate of 0.50 per cent in respect of corporate guarantee-Interest-Commercial expediency of loan is wholly irrelevant in ascertaining ALP of interest on said loan advanced to AE.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-16648","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4kw","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=16648"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16648\/revisions"}],"predecessor-version":[{"id":16649,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/16648\/revisions\/16649"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=16648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=16648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=16648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}