TMI Blog2017 (6) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... - S. V. Gangapurwala And G. S. Kulkarni, JJ. Mr. A.R. Malhotra, Advocate for the Appellant Mr. Vipul J. Shah, Advocate for the Respondent ORDER Per Court The present appeal relates to Assessment Year 2007-2008. 2 The order of the Tribunal is assailed by the Revenue. The Tribunal has partly allowed the appeal. Mr. Malhotra, the learned counsel for the Appellant submits that the following issue gives rise to the substantial question of law : Whether on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal was justified in directing the Assessing Officer to determine the Arm's Length interest by considering the LIBOR (London Inter Bank Operative Rate) plus 2% on the monthly clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Associate Enterprises would be determined on the basis of rate of interest being charged in the country where the loan is received/consumed. Mr. Suresh Kumar, the learned counsel for the revenue informed us that the Revenue has not preferred any appeal against the decision of the Tribunal in VVF Ltd. Vs. DCIT (supra) and DCIT Vs. Tech Machindra Ltd. (supra) on the above issue. No reason has been shown to us as to why the Revenue seeks to take a different view in respect of the impugned order from that taken in VVF Ltd. Vs. DCIT (supra) and DCIT Vs. Tech Mahindra Ltd. (supra). The Revenue not having filed any appeal, has in fact accepted the decision of the Tribunal in VVF Ltd. Vs. DCIT (supra) and DCIT Vs. Tech Mahindra Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an the rate of interest on domestic borrowings, even which is lower than the interest rate of 10 per cent taken as ALP by the TPO, or, for that purpose, rate of interest on any other currency loans. Having said that, we may also reiterate that as we hold so, we are not giving any decision on whether the ALP adjustment can be made, on the basis of LIBOR plus mark up, in respect of extended credit because we are dealing with a very limited issue in this appeal which does not require adjudication on the broader question as to whether an extended credit period can anyway be compared with a loan, much less a loan in some other currency which will have distinct lending rates depending on the peculiarities relating that currency, since it does not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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