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2015 (11) TMI 12 - AT - Income TaxTransaction of foreign currency loan given to the Associate Enterprise - Transfer pricing adjustment - addition made by TPO taking the rate of interest at 12.7% in respect of the foreign currency loan given to Associate Enterprise - Held that:- In the eight case laws cited by the assessee, it has been held that it is the LIBOR, which has to be applied in the case of foreign currency loan given to AE. All these case laws were cited by the assessee before the ld. DRP. However, the ld. DRP has not followed these case laws, contending that the decision in “Perot Systems TSI (I) Ltd.” [2009 (10) TMI 638 - ITAT DELHI] was not considered by the Tribunal in any of these eight cases. Now, as rightly contended on behalf of the assessee, the judicial hierarchy is to be respected and an order passed by a higher court/authority cannot be disregarded/distinguished for any reason, including for non-consideration of some case laws, as has been done by the ld. DRP in the present case. There is no gainsaying that the orders of the Tribunal are binding on the lower authorities, including the DRP. “Agarwal Warehousing & Leasing Co. Ltd.”, (2002 (7) TMI 86 - MADHYA PRADESH High Court), as pointed out, is the authority on the point. Therein, the decision of the Hon’ble Supreme Court in the case of “Kamlakshi Finance Corporation Ltd.”,[1991 (9) TMI 72 - SUPREME COURT OF INDIA] is also a case in point. - Decided in favour of assessee.
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