dated 16.03.2017, which was issued by the
petitioner. Similarly, the aspect of SBLC was
Page 11 of 101
C/IAAP/55/2017 ORDER ... terminal.
Mr. Joshi further contended that draft Stand By
Letter of Credit (SBLC) is of no consequences.
It is further contended by Mr. Joshi that
paid during
the tenor. HSBC India had drawn down on SBLC/Guarantee on 15th
February, 2012 for Rs. 3.7 Crores to clear pending interest payments ... without assigning the most important and liquid security of HSBC
SBLC/Guarantee, which was backed by lien and security over cash fixed
deposit
purpose of business only.
The assessee stated that Standby Letter of Credit [SBLC] was
taken for an amount of Euro ten millions and the primary ... objective of investment in FDRs was to obtain SBLC
pertaining to assessee's business activity. It was further
explained that the source
Shalini Properties and Developers Pvt. Ltd. as guarantee
commission/SBLC charges without deduction of tax at source in terms of Section 194H ... observed that since the guarantee commission/SBLC charges of Rs.
5,87,53,467/- has been shown as income in the hands of the recipient
that there were
4
differences in Ledger Balance, the applicant worked as SBLC-111 on OTA
and the same was brought to the notice ... Enquiry Officer concluded that the applicant worked
as SBLC-III on OTA but overlooked the important fact that the applicant
orally informed about the differences
reference:
"3. The Project funder will arrange necessary financial
instruments (BG/SBLC/CD/SKR) to provide collateral support to
generate the required funding ... emphasis supplied). The Project Owner transfers 8% (Eight
Percent) towards cost of SBLC and 2% (Two Percent) towards
fees to the intermediaries/beneficiaries into
corporate guarantee whereas in case of
assessee, it is issuance of SBLC. Hence, the said rates are not applicable in
case of the assessee ... been charged a
rate of 0.9% by an Indian bank for SBLC. In our view, this is a clear case of
internal CUP. Further
loan of US $1.50 million and a Standby Letter of
Credit Facility (SBLC) of US $1.20 million, converted thereafter into working
capital, under its Overseas
petitioner herein. In order to facilitate the
above activity of arranging the SBLC on behalf of the
steel company and as advance amount
corporate guarantee whereas in case of assessee, it is issuance of
SBLC. Hence, the said rates are not applicable in case of the assessee ... been charged a rate of 0.9% by an Indian bank for
SBLC. In our view, this is a clear case of internal CUP. Further
