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2017 (6) TMI 1207 - HC - Income TaxALP in the case of loans advanced to Associate Enterprises - whether loans determined on the basis of rate of interest being charged in the country where the loan is received / consumed? - Held that:- In the present case, the Revenue has not brought on record any other evidence to the effect that in the country where the loan is received by the Associate Enterprise, the rate of interest is different than the one which is being charged by the assessee. Further, it has been brought on record that the assessee has been advanced loan by the foreign bank at rate of 4.79 % and has charged interest on loan advanced to Associate Enterprise at ₹ 7.3%. We could have considered the case of the Revenue had the Revenue brought on record the rate of interest being charged in the country where the Associate Enterprise of the assessee has advanced the loan. Naturally, the period for which loan has been given would be considered and not the period within which the loan has been repaid. However, considering the fact that the assessee has got the loan at 4.79% and has advanced the loan to his Associate Enterprise at 7.3% and the very basis of the order of the Transfer Pricing Officer was on wrong premise i.e. it has considered the rate as prevailing in India, the Tribunal has considered the facts of the present case in a plausible manner.
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