CIT v. Everest Kento Cylinders Ltd.

The Great Eastern Shipping Co. Ltd, Mumbai vs. DCIT Cir 5(3)(2), Mumbai

In the result, appeal of the assessee (ITA number 1597/M/2018) is allowed for statistical purposes

Bench: Shri Prashant Maharishi, Am & Shri Narfendrakumar Choudhary , Jm & & The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 N D Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of Income- The Great Eastern Shipping Co. Tax, Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 N D Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…carefully considered the reasons given by the coordinate bench while deleting the adjustment on account of corporate guarantee commission. However, we are not inclined to accept that as the honourable Bombay High Court in case of Everest Kanto cylinders Ltd (378 ITR 57 (Bom)) has upheld the benchmarking of corporate guarantee commission at the rate of 0.5%, for all the years and in all economic circumstances and for all the assessee is across the globe, that rate should be accepted as arm‟s-length price of corporate guarantee pg. 19 commission. If we accept that proposition, the requirement of maintaining cont…

The Great Eastern Shipping Co. Ltd, Mumbai vs. DCIT RG 5(3), Mumbai

In the result, appeal filed by the learned assessing officer is dismissed

Bench: Shri Prashant Maharishi, Am & Ms. Kavitha Rajagopal, Jm The Great Eastern Shipping Co. The Dy. Commissioner Of Ltd. Income-Tax, Kalyaniwalla & Mistry Llp Range-5(3), Esplanade House, 2 Nd Floor, Vs. Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Fort, Mumbai-400 001 Mumbai-400 020 (Appellant) (Respondent) Pan No. Aaact1565C The Dy. Commissioner Of The Great Eastern Shipping Income-Tax, Co. Ltd. Range-5(3), Kalyaniwalla & Mistry Llp Vs. Esplanade House, 2 Nd Floor, Room No.525B, 5Th Floor, M.K. Marg, 29, Hazarimal Somani Marg, Mumbai-400 020 Fort, Mumbai-400 001 (Appellant) (Respondent)

…n the decision of the Mumbai Tribunal in the case of Everest Kanto Cylinders Ltd. (ITA No. 542/Mum/2012 dated 23rd November, 2012) wherein internal CUP was accepted as ALP. The Appellant submits that this decision has been affirmed by the Bombay High Court in 378 ITR 57. vii. The facts of Everest Kanto were as follows: a. Everest Kanto had a subsidiary,EKC Dubai. ITA Nos. 3272/Mum/2015 & 1656/Mum/2014 The Great Eastern Shipping Co. Ltd.; A.Y. 09-10 b. Dubai subsidiary availed a loan from the ICICI Bank, Bahrain branch. Everest Kanto provided a financial guarantee to ICICI Bank. c. Everest Kanto charged guarantee…

Assistant Commissioner of Income Tax, Central Circle -3(2), Mumbai vs. M/S Viraj Profiles Ltd., Mumbai

In the result, the appeal filed by the revenue is partly allowed

Bench: Shri B.R. Baskaran (Am) & Shri Sandeep Singh Karhail (Jm)

…IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “J” Bench, Mumbai. Before Shri B.R. Baskaran (AM) & Shri Sandeep Singh Karhail (JM) I.T.A. No. 1998/Mum/2022 (A.Y. 2016-17) Vs. M/s. Viraj Profile ACIT, CC-3(2) Room No. 1913 1st Floor, Viraj Air India Building Towers, JN of Nariman Point Andheri Kurla Road Mumbai - 400 021. W.E. Highway Andheri East Mumbai-400 069. PAN : AABCV1740N (Appellant) (Respondent) Assessee by Shri Pratik Jain Department by Shri Manoj Kumar Date of Hearing 08.08.2023 Date of Pronouncement 09.08.2023 O R D E R Per B.R.Baskaran (AM) :- The revenue has filed this appeal challenging the ord…

Greaves Cotton Ltd, Mumbai vs. Asst CIT Cir 7(1)(1), Mumbai

In the result appeal for assessment year 2012 –

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS KAVITHA RAJAGOPAL, JM ITA No. 2069/MUM/2017 (Assessment Year 2012-13) ITA No. 6560/MUM/2018 (Assessment Year 2014-15) Graves Cotton Ltd 3rd Floor, Motilal Oswal Center, ACIT CIR 7(1)(1) Junction of Gokhale & Sayani Aayakar Bhavan, Mumbai Vs. Rd, Prabhadevi, Mumbai-400 025 (Appellant) (Respondent) PAN No. AAACG2062M Assessee by : Ms. Aarti Vissanji, Ms. Aastha & Shri Amol Patankar, ARs Revenue by : Ms. Samruddhi Dhananjay Hande, DR Date of hearing: 28.04.2023 Date of pronouncement : 25.07.2023 O R D E R PER PRASHANT…

Greaves Cotton Ltd, Mumbai vs. Asst CIT Cir 7(1)(1), Mumbai

In the result appeal for assessment year 2012 –

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS KAVITHA RAJAGOPAL, JM ITA No. 2069/MUM/2017 (Assessment Year 2012-13) ITA No. 6560/MUM/2018 (Assessment Year 2014-15) Graves Cotton Ltd 3rd Floor, Motilal Oswal Center, ACIT CIR 7(1)(1) Junction of Gokhale & Sayani Aayakar Bhavan, Mumbai Vs. Rd, Prabhadevi, Mumbai-400 025 (Appellant) (Respondent) PAN No. AAACG2062M Assessee by : Ms. Aarti Vissanji, Ms. Aastha & Shri Amol Patankar, ARs Revenue by : Ms. Samruddhi Dhananjay Hande, DR Date of hearing: 28.04.2023 Date of pronouncement : 25.07.2023 O R D E R PER PRASHANT…

Greaves Cotton Ltd, Mumbai vs. Asst CIT Cir 7(1)(1), Mumbai

In the result appeal for assessment year 2012 –

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS KAVITHA RAJAGOPAL, JM ITA No. 2069/MUM/2017 (Assessment Year 2012-13) ITA No. 6560/MUM/2018 (Assessment Year 2014-15) Graves Cotton Ltd 3rd Floor, Motilal Oswal Center, ACIT CIR 7(1)(1) Junction of Gokhale & Sayani Aayakar Bhavan, Mumbai Vs. Rd, Prabhadevi, Mumbai-400 025 (Appellant) (Respondent) PAN No. AAACG2062M Assessee by : Ms. Aarti Vissanji, Ms. Aastha & Shri Amol Patankar, ARs Revenue by : Ms. Samruddhi Dhananjay Hande, DR Date of hearing: 28.04.2023 Date of pronouncement : 25.07.2023 O R D E R PER PRASHANT…

Greaves Cotton Ltd, Mumbai vs. Asst CIT 7(1)(1), Mumbai

In the result appeal for assessment year 2012 –

Bench: Shri Prashant Maharishi, Am & Ms Kavitha Rajagopal, Jm

…IN THE INCOME TAX APPELLATE TRIBUNAL “K” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS KAVITHA RAJAGOPAL, JM ITA No. 2069/MUM/2017 (Assessment Year 2012-13) ITA No. 6560/MUM/2018 (Assessment Year 2014-15) Graves Cotton Ltd 3rd Floor, Motilal Oswal Center, ACIT CIR 7(1)(1) Junction of Gokhale & Sayani Aayakar Bhavan, Mumbai Vs. Rd, Prabhadevi, Mumbai-400 025 (Appellant) (Respondent) PAN No. AAACG2062M Assessee by : Ms. Aarti Vissanji, Ms. Aastha & Shri Amol Patankar, ARs Revenue by : Ms. Samruddhi Dhananjay Hande, DR Date of hearing: 28.04.2023 Date of pronouncement : 25.07.2023 O R D E R PER PRASHANT…

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

DCIT CC 8(3)(Erstwhile DCIT, CC-46, Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

DCIT CC 8(3)(Erstwhile DCIT, CC-46, Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

DCIT CC 8(3), Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

DCIT CC 8(3), Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

Jsw Steel Limited, Mumbai vs. ACIT, CC-46, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

…uarantee is not an international transaction has placed reliance on Tribunal decisions. The contentions raised by ld. Counsel are unsustainable in the light of decision rendered by Hon'ble Jurisdictional High Court in the case of Everest Kento Cylinders Ltd. (378 ITR 57). Thus, we hold Corporate Guarantee facility provided to overseas AE by the assessee is an international transaction. In so far as the rate of commission is concerned, the Ld.AR of the assessee company relied upon the following judicial pronouncements wherein the commission on corporate guarantee is restricted at M/s. JSW Steels Ltd. 0.25% -0.50%.…

M/S Greatship (India) Ltd, Mumbai vs. Assistant Comm.of Income Tax 5(1)(1), Mumbai

In the result, the appeal of the assessee is partly allowed

Bench: Shri Amit Shukla & Shri Amarjit Singhm/S Greatship (India) Vs. Assistant Commissioner Ltd., C/O, Kalyaniwalla Of Income Tax -5(1)(1) Mistry Llp, Esplanade Room No. 568, Aayakar House, 29, Hazarimal Bhavan, M.K. Road, Somani Marg, Fort, Mumbai - 400020 Mumbai – 400001 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aabcg8542K Appellant .. Respondent

…ommission that was paid by the assessee to a bank for standing guarantee on its behalf for a third party. Further, the Tribunal after drawing support from the order of the Hon‟ble High Court of Bombay in the case of CIT Vs. Everest Kanto Cylinders Ltd. (2015) 378 ITR 57 (Bom), had approved the determination of ALP of the corporate guarantee given by the assessee to the bank in order to facilitate raising of loan by its AE i.e on the basis of the aforesaid Internal P a g e | 6 M/s Greatship (India) Ltd. Vs. ACIT, 5(1)(1) CUP applied by the assessee. In its aforesaid order the Tribunal had observed as under: “17.…

DCIT -5(2) (1), Mumbai vs. Kec International Ltd, Mumbai

Accordingly, Ground No. 3.1 & 3.2 raised by the Assessee are dismissed

…as a corporate guarantee for which no fees was paid by the assessee and going by the ratio of the decision of coordinate bench of the Tribunal in Everest Kanto Cylinders Ltd. Vs. DCIT [34 Taxmann.com 19] as affirmed by Hon’ble Bombay High Court on 08/05/2015 [58 Taxmann.com 254], we estimate the TP adjustments against both these transactions @0.20%. The Ld. TPO / Ld. AO is directed to recompute the same in terms of our above order. The grounds stand partly allowed.” The above decision of the Tribunal was followed in appeal by the 27. Revenue for the Assessment Year 2011-12. 28. There is nothing on record to pers…