(A.K. Menon, J.)

1. The revenue has filed the present appeal proposing the following three questions as substantial questions of law:

“(1) Whether on the facts and in the circumstances of the case and in law, order passed bearing ITA No.542/Mum/2012 dated 23.11.2012 (A.Y. 2007-08) by ignoring the Income Tax (fifth amendment) Rules 8D for disallowing of the interest u/s 14A of the I.T.Act 1961 was perverse?

(2) Whether on the facts and circumstance of the case and in law the ITAT Mumbai Bench “K” Mumbai was justified in restricting the disallowance u/s 14A of the I.T. Act 1961 to Rs.1,00,000/-. When the Assessee Company itself had made disallowance of Rs.4,47,649/- ?

(3) Whether on the facts and in the circumstances of the case and in law the Hon'ble ITAT “K” Bench Mumbai was right in deleting the addition of Rs.28,50,353/- on account of TP adjustment on guarantee commission ?”

2. The facts in brief are as follows:

The Assessee was engaged in making High Pressure Gas Cylinder services and compressed natural gas cylinder. The assessee had subsidiary company at Dubai. The assessee company filed an E-return on 31.10.2007 declaring total income of Rs.71,90,77,156/- under the