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2015 (4) TMI 1253 - AT - Income TaxAddition u/s 14A - Held that:- Respectfully following the order of the ITAT in the case of the assessee itself for the assessment year 2006-07 (supra), on identical issue, we remand the matter to the file of the Assessing Officer to decide the issue afresh after affording opportunity of being heard to the assessee in view of the order of the ITAT passed in the assessment year 2006-07. These grounds are accordingly allowed for statistical purposes. TPA - interest rate charged to the subsidiaries - contentions of the assessee remained that the interest rates were accepted at arm's length in the earlier years since the interest rates cannot be changed year after year, therefore, the same should be considered at arm's length this year also - Held that:- Considering above submissions, we find that it is an undisputed fact that in the earlier assessment years 2005-06 and 2006-07, the interest rates have been accepted at arm's length. in the case of Bhansali & Co [2014 (12) TMI 1149 - ITAT MUMBAI] held DRP erred in considering the loan as loan from India. The fact of the matter is that it was a foreign currency loan which was given abroad. Therefore the most appropriate method is taking the LIBOR as correct benchmark - the benchmarking done by the assessee is correct and the AO is directed to delete the addition.
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