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2018 (1) TMI 1604 - AT - Income TaxTP Adjustment - rate of interest on CCDs - whether it is to be calculated under PLR as claimed by the assessee or at LIBOR+ as computed by the TPO/DRP - HELD THAT:- As decided in Adama India Pvt. Ltd [2017 (1) TMI 893 - ITAT HYDERABAD] we agree with the assessee's contentions that the CCDs cannot be categorised as a loan and LIBOR plus two hundred basis points benchmark cannot be accepted on the facts of the case. Coming to the issue of adopting the benchmark rate in Indian context, assessee has justified the ALP not only on the basis of SBI PLR, which was at 12.26% for the year under consideration, but also from the data from NSDL website in which average coupon rate ranged from 0.50% to 16.50% with an arithmetic mean of 12.50%. These rates were already before the TPO. Therefore, we are of the opinion that there is no need to restore the matter to the file of the AO for reexamination, when assessee has justified the issuance of CCDs at 12%. We are of the opinion that the rate at which the CCDs were given are within the range, therefore, no further addition can be considered under the TP provisions. In view of that, the addition so made is deleted and grounds of the assessee.
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