Bank guarantees are different from corporate guarantees; HC accepts 0.5% Guarantee Commission Rate

Commissioner of Income Tax Vs Everest Kento Cylinders Ltd. (Bombay High Court) Bombay HC clarifies bank guarantee vs. corporate guarantee distinctions in Everest Kento Cylinders case. Ruling impacts income tax computation. In a recent judgment, the Bombay High Court addressed critical distinctions between bank guarantees and corporate guarantees, specifically concerning the computation of guarantee commission. The case, Commissioner of Income Tax vs. Everest Kento Cylinders Ltd., involved substantial questions of law related to the disallowance of interest under section 14A of the Income Tax A...