Usha Martin Limited Vs ACIT (ITAT Ranchi)
Summary: The Ranchi Bench of the Income Tax Appellate Tribunal partly allowed the appeal filed by Usha Martin Limited against the order of the CIT(A), Ranchi dated 04.08.2017 in Appeal No. 468/Ran/Oth/11-12 for Assessment Year 2008-09. During the hearing, the assessee did not press Ground Nos. 3, 4.1, 4.2, 4.3, 5.1 and 5.2, which were accordingly dismissed as not pressed. Ground No. 1 was stated to be general in nature.
In relation to Ground Nos. 2 to 2.4, the dispute concerned international transactions, including the determination of the arm’s length price of a corporate guarantee and the interest rate relating to a loan from Siam Commercial Bank. The Transfer Pricing Officer had determined the arm’s length price of the corporate guarantee at 4% by following his earlier orders, and the CIT(A) had upheld the resulting addition. The assessee relied upon the Tribunal’s coordinate-bench decision in its own case for AY 2007-08 in ITA No. 68/Ran/2017 dated 12.06.2025.
Following that earlier decision, the Tribunal noted that the corporate guarantee issue was squarely covered and directed the Assessing Officer to restrict the adjustment on account of the corporate guarantee to 0.5%. The Tribunal therefore partly allowed the corresponding ground.
