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2018 (8) TMI 442 - AT - Income TaxTransfer pricing adjustment - addition on account of the International Transaction in the nature of interest on loans granted to Associated Enterprises of the assessee - tested party - Held that:- This issue is covered in favour of the assessee and against the Revenue by the decision of Co-ordinate Bench of Tribunal in assessee’s own case for A.Y. 2009-10 [2017 (11) TMI 639 - ITAT DELHI] wherein held there is an inherent inconsistency in the view taken by the TPO because, if at all the ALP interest in so far as the assessee is concerned is the interest rate expected by an Indian lender, then irrespective of the fact of Nor Pearl Knitweard Limited, Bangladesh obtained loan at Bangladesh at any rate less than this expected rate, he should not have accepted. The tested party in the case of Nor Pearl Knitwear Limited, Bangladesh and in the case of other two concerns is the assessee only. In respect of the same tested party the TPO cannot adopt two different yardsticks. Shifting of the testing parties in the same breath is not permissible. We, therefore, in this set of circumstances agree with the Ld. AR that since loans or advances in case of the two other concerns also in foreign currency, and all the three persons stand in the same footing, as such, the same treatment has to be given to them equally. With this view of the matter, we direct the AO to re-compute the ALP of the interest at 6% in respect of House of Pearl Fashions Limited, USA AND Multination Textile Group Limited, Maritius also. - Decided in favour of the assessee
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