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2015 (12) TMI 1552 - AT - Income TaxAddition on account of notional interest for Share Application Money paid to AE - TPA - Held that:- TPO has considered this transaction as a loan transaction by brushing aside the submissions of the learned AR of the assessee that this money was given as share application money and that too without giving any finding or indication any basis to say that this is a loan transaction. TPO has not brought on record anything to show that any unrelated share applicant was to be paid any interest for the period between making the share application money payment and allotment of shares. Therefore even for this delay in allotment of shares also, the very foundation of impugned ALP adjustment is devoid of legally sustainable merits. Hence we hold that the impugned ALP adjustment is devoid of merit and therefore deleted in both years because it was agreed by both sides that facts on this aspect are identical in both years. Also as we have held that no ALP adjustment is to be made in the present case, the dispute raised by the revenue that such adjustment should be as per domestic PLR as against LIBOR rate approved by CIT (A) does not survive and therefore, the appeal of the revenue is liable to be rejected - Decided in favour of assessee.
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