Guarantee fee charged by trust for providing third-party guarantee to small-scale industries does not amount to profit motive: ITAT [Read Order]

There is no business incentive involved in the guarantee price that a trust charges small-scale industries for third-party guarantees.
By Aparna. M - On December 10, 2023 9:00 pm - 2 mins read
Guarantee fee charged by trust for providing third-party guarantee to small - scale industries amount toprofit motive - ITAT - TAXSCAN

The Income Tax Appellate Tribunal (ITAT) Mumbai bench held that the guarantee fee charged by the trust for providing third-party guarantees to small-scale industries did not amount to a profit motive. The assessee, Credit Guarantee Fund Trust for Micro and Small Enterprises, is an irrevocable trust settled by the President of India, acting through the…

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