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2022 (6) TMI 664 - AT - Income TaxTP adjustment - international transactions relating to loans advanced to the subsidiary company - assessee has offered rate of interest of 3.5% but AO chose to apply 13.87% - HELD THAT:- The assessee has offered rate of interest of 3.5% on international transaction of loans advance to its AE. How this rate has been arrived at is not specified. AO has considered the same @ 13.87%. which was done on the basis of addition of 200 basis point on the interest rate of 12.30% being Indian bank, SBI Prime Lending Rate. We note that Hon'ble Delhi High Court has disproved the comparison with prevailing rates in Indian banking system for international transaction in the case of Cotton Naturals [2015 (3) TMI 1031 - DELHI HIGH COURT] As decided in own case [2022 (5) TMI 819 - ITAT DELHI] noted that LIBOR with certain markup was to be applied after taking into account the decision of Hon'ble Delhi High Court in case of Cotton Natural (I)(P.) Ltd.[supra] - Following the same, ITAT chose to remit the issue before them to the AO to consider appropriate LIBOR rate plus markup. The ITAT in the said case has taken note that the Ld. CIT(A) has applied LIBOR plus certain basis points on those years. Since IT AT in assessee's own case had earlier remitted the issue to the file of AO with certain directions, we find it appropriate to remit this issue to the file of AO. The AO shall follow the directions of the ITAT as referred above and decide accordingly. Appeal of the Revenue is allowed for statistical purposes.
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