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2016 (11) TMI 1513 - AT - Income TaxAppropriate arm's length interest for bench marking the transactions for providing interest free loan to the A.E. - LIBOR +2% as fair rate of interest for the IT's entered into by the assessee with its AE - Held that:- While deciding the appeals for the earlier years, the Tribunal while deciding similar issue followed its earlier order for the assessment year 2009–10, and held that LIBOR plus 2% is the appropriate rate of interest for the interest free loan transactions with A.E. The learned Departmental Representative has not brought to our notice any material change in the facts and circumstances in the impugned assessment year to deviate from the view expressed by the Tribunal - Decided in favour of assessee Disallowance u/s 14A - Held that:- As decided in assessee's own case Tribunal after considering similar claim made by the assessee, directed the Assessing Officer to examine and not to disallow any expenditure under section 14A if it is found that investment is made in foreign subsidiary. - Decided in favour of assessee Addition of 3% risk premium added to cost of internal borrowing while arriving at ALP of interest rate to compute interest on interest-free advance given by the assessee to its AE - Held that:- While deciding the first ground of appeal filed by the assessee we have discussed the facts of the issue under consideration. In our opinion,the AO was not justified in adding 3% risk premium to the cost of borrowing, as held by the DRP. We decide the effective ground of appeal against the AO.
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