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2016 (10) TMI 412 - AT - Income TaxAddition on account of guarantee commission pursuant to the direction of the Dispute Resolution Panel (DRP) - Held that:- We find that there is no material difference between the facts of the earlier year and the facts for the year under consideration. Therefore, respectfully following the principle laid down by the Hon'ble High Court in assessee’s own case, we hold that DRP was not justified in confirming the addition made by the AO. Reversing the order of the AO, completed in pursuance of the direction of the DRP, we decide the second ground in favour of the assessee. Addition on account of interest charged to AE - LIBOR rate computation - Held that:- Following the earlier order of this Tribunal in assessee’s own case, we hold that the arm’s length rate in respect of loan provided to the AE should be LIBOR + 2%. Accordingly, the Assessing Officer is directed to recomputed the arm’s length rate in respect of the loan transaction to each AE of the assessee by clubbing all the loan transactions of each AE and then compare the interest charged by the assessee with arm’s length rate at LIBOR +2%. It appears that as regards the transactions of loan to its AE at China, the said transaction is at arm’s length as the as has charged the interest at 7%, therefore, only with respect to the transaction of loan to AE at Dubai are required to be re-computed for the purpose of TP adjustment
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