Addition Deleted for Lack of Benchmarking: ITAT Rejects Arbitrary TP Adjustments

Precision Camshafts Limited Vs Assessment Unit (ITAT Pune) Corporate Guarantee Fee Cannot Be Imputed When Bank Prohibits Charging; Ad-Hoc Interest Mark-Up Also Unsustainable – TP Additions Deleted by Pune Tribunal Tribunal noted that the Bank of Baroda loan agreement expressly prohibited the Assessee from charging any guarantee commission to its Netherlands subsidiary. Following its own order for AY 2020-21, Tribunal held that when a third-party bank itself bars charging fees, the ALP cannot be anything other than NIL, making the TPO’s 0.5% adjustment unsustainable. On the protective addit...