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2019 (3) TMI 1805 - ITAT DELHITP Adjustment - Adjustment on account of interest payable/paid by the assessee on Fully and Compulsorily Convertible Debentures [FCCDs] as issued by it to its Associated Enterprises [AEs] - HELD THAT:- The undisputed fact is that the FCCDs were issued during FY 2008-09, 2009-10 and 2011-12, which means that no fresh FCCDs were issued during the year under consideration. As decided in own case [2018 (5) TMI 1774 - ITAT DELHI] and [2018 (9) TMI 964 - ITAT DELHI] it is reasonable on facts and also permissible under law to include 300 points basis while calculating the interest rate. In view of the fact that the variance does not exceed 5% for the FCCDs issued during the FYs 2008-09 and 3% for the FCCDs issued subsequently interference by the Ld. TPO with the value of the international transaction. The addition, therefore, cannot be sustained and shall be directed to be deleted. In the present case since the difference is less than 5%, therefore, no addition on account of arm’s length price could have been made - Decided in favour of assessee.
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