ITAT deletes Disallowance for Guarantee Commission to Associate Enterprise

Lease Plan India P Ltd Vs ITO (ITAT Delhi) Introduction: In a recent case, Lease Plan India P Ltd. vs. ITO, before the Income Tax Appellate Tribunal (ITAT) Delhi, the tribunal passed a significant ruling. It deleted the disallowance of deduction claimed by Lease Plan India P Ltd., on account of payment of guarantee commission to an Associated Enterprise, Lease Plan Corporation NV, on the grounds of non-deduction of tax at source. Analysis: The pivotal issue in this case was whether the guarantee commission, paid by Lease Plan India to its Associate Enterprise, is liable to tax in India, and co...