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2019 (4) TMI 1021 - ITAT DELHITransfer pricing adjustment - benchmarking the interests on the loans - applying LIBOR rate of currency of invoice raised plus suitable basis points - HELD THAT:- Hon’ble Jurisdictional High Court in the case of CIT Vs. Cotton Naturals (I) Pvt. Ltd. [2015 (3) TMI 1031 - DELHI HIGH COURT] has clearly held that while benchmarking the interests on the loans, the LIBOR rate of currency in which the loan has been raised, should be applied. We direct Ld. AO/TPO to benchmark the transaction applying LIBOR rate of currency of invoice raised plus suitable basis points. Since, we have adjudicated the alternative prayer of the assessee, we are not deciding the other argument of the learned counsel challenging the international transaction of interest on overdue receivables. Accordingly, grounds no. 1 to 3 of the appeal are partly allowed. Disallowance under Section 14A read with Rule 8D(2)(iii) - HELD THAT:- As relying on VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] we direct the Assessing Officer to accordingly restrict the disallowance under Section 14A read with Rule 8D(2)(iii) of the Rules to average value of investment which yield exempt income during the year. The ground of the appeal is partly allowed.
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