Bombay HC Upholds 0.5% Corporate Guarantee Fee; No Section 40(a)(ia) Disallowance for Short TDS Deduction 

PCIT-16 Vs Zee Entertainment Enterprises Limited (Bombay High Court) The Bombay High Court considered an appeal filed by the Revenue challenging an order of the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2010-11. The Revenue raised eleven questions of law relating to disallowance under Section 40(a)(ia), transfer pricing adjustment on corporate guarantee commission, and disallowance under Section 14A read with Rule 8D. With respect to questions (c) and (d), concerning whether disallowance under Section 40(a)(ia) could be made in cases involving short deduction of tax at source, t...