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2017 (12) TMI 583 - HC - Income TaxBenefit of Section 92B - Held that:- Taking into account the observations made in Hindalco Industries Ltd. Vs.ACIT [2011 (12) TMI 227 - BOMBAY HIGH COURT] the first issue is answered in favour of the assessee and against the department. Tribunal while relying on the international transaction granted benefit of Section 92B to the assessee which is just and proper. Regarding LIBOR rate plus 2% on account of interest free loans provided by the appellant to its associated enterprises, in the view of the observations made by the Delhi High Court in para no.14 as reproduced above, the same is required to be answered in favour of the assessee. Regarding ITA preferred by the assessee in view of the Delhi High Court judgment (para no.14), the international transaction is required to be accepted, therefore, tribunal has committed serious error. The assessee will be entitled for the benefit of average LIBOR rate existing at that time which was 0.79% and addition of adhoc 2% is not proper. In that view of the matter, the addition of 2% interest in the income is required to be quashed and set aside.
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