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2021 (3) TMI 70 - AT - Income TaxTP adjustment - interest paid by the assessee to its Associated Enterprise [AE] M/s. Twilzon Limited on Fully and Compulsorily Convertible Debentures [FCCDs] issued by the assessee to such AE - FCCDs were issued on 26.07.2011 i.e. in F.Y. 2011-12 relevant to A.Y. 2012-13 and no FCCDs were issued in A.Y. 2013-14 and 2014-15. Therefore, A.Y. 2012-13 is taken as the lead year - HELD THAT:- On similar circumstances, in group company, namely, Granite Gate Properties Ltd., the Tribunal for A.Y. 2012-13 [2018 (9) TMI 964 - ITAT DELHI]has considered similar quarrel where FCCDs were issued to same AE and there also SBI PLR rate + 300 basis points were taken into consideration for payment of interest. Tribunal in assessee's own case for the immediately preceding years, we are of the considered opinion that the issue is no longer res integra and this bench is required to follow the same in the absence of any change of circumstances. No change of circumstances is pleaded before us. We, therefore, while respectfully following the above decision, reach a conclusion that it is reasonable on facts and also permissible under law to include 300 points basis while calculating the interest rate. Further, in view of the fact that the variance does not exceed 5% for the FCCDs issued during the FYs 2008-09 and 3% for the FCCDs issued subsequently interference by the Ld. TPO with the value of the international transaction. The addition, therefore, cannot be sustained and shall be directed to be deleted. We accordingly direct the learned AO/TPO to delete the same - we direct the Assessing Officer/TPO to delete the impugned adjustments. - Decided in favour of assessee.
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