Transfer pricing adjustment on account of alleged guarantee transaction

Bennett Coleman & Co Ltd Vs DCIT (ITAT Mumbai)  What is being termed as a guarantee is the obligation of the assessee company, in terms of “agreement for the sale and purchase of entire equity share capital of Virgin Radion Holdings Ltd UK” dated 30thMay 2008, which has led to the actual crystallization of sale on 30th June 2008. The related agreement clause was, at the cost of repetition, ““In consideration of the seller entering into this agreement, …(the TIML-India), as primary obligor and not merely as surety, unconditionally and irrevocably guarantees to the seller the ...