While upholding ALP adjustment on LOC in case of Axis Bank, the Ahmedabad ITAT rules on difference between letter of comfort and guarantee commission. With respect to LOC being equated to bank guarantees, the Bench comprising Annapurna Gupta and T.R Senthil explains that bank guarantee is a kind of guarantee from a lending organization to cover a debtor's liabilities if …
The Mumbai Bench of Income Tax Appellate Tribunal has directed the ALP Computation Towards Guarantee Commission at a rate of 0.3523% in the case of Macrotech Developers.The bench of Kuldip Singh and Padmavathy S. has observed that the rate of guarantee commission is required to be determined on the basis of the credit rating of the issuer company. The Mumbai …
