FIRSTRAND BANK LIMITED - INDIA BRANCH,MUMBAI vs. ASSISTANT COMMISSIONER , MUMBAI

ITA 4580/MUM/2024Status: DisposedITAT Mumbai10 March 2026AY 2020-21Bench: SHRI PAWAN SINGH (Judicial Member), SHRI GIRISH AGRAWAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the issue was squarely covered by a previous decision in the assessee's own case for Assessment Year 2018-19. Following that precedent, the upward adjustment made by the TPO/DRP was deleted.

What were the facts?

The assessee, an Indian branch of a South African bank, entered into an international transaction for guarantee commission with its Associated Enterprise (AE). The Transfer Pricing Officer (TPO) made an upward adjustment to the arm's length price (ALP) of this transaction, which was upheld by the Dispute Resolution Panel (DRP).

What were the issues?

The primary issue was the determination of the arm's length guarantee commission and the validity of the upward adjustment made by the tax authorities. This involved evaluating the functions performed, risks assumed, and the overall economic substance of the transaction.

Which sections of the Income-tax Act were involved?

Section 92CA,Section 144C

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(2)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “K” BENCH MUMBAI

Before: SHRI PAWAN SINGH & SHRI GIRISH AGRAWAL

Hearing: 24.12.2025Pronounced: 10.03.2026

PER GIRISH AGRAWAL, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the final assessment order passed pursuant to the directions of the Dispute Resolution Panel-1, Mumbai, (DRP) vide order No. ITBA/DRP/F/144C(5)/2024- 25/1065484084(1) dated 07.06.2024, u/s. 144C(5) of the Income-tax Act, 1961 (hereinafter referred to as the “Act”), for Assessment Year 2020-21. 2. Grounds taken by assessee are reproduced as under: “1:0 Re.: Erroneous determination of quarantee commission without evaluating the true essence of transaction

2 FirstRand Bank Ltd. AY 2020-21

1.1.

The learned Transfer Pricing Officer ("TPO")/ Assessing Off

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 92CA

All 3,978 judgments and leading authorities on Section 92CA →

Recent GST High Court judgments

Search GST case law →