TMI Blog2017 (2) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the additional evidence. A catena of judgments is available by now wherein the LIBOR+ and varying degree of incremental value has been adopted, which is evident from the fact that ld. CIT(A) has adopted a rate of LIBOR+ 2% in AY 2006-07 and 0.75% in AY 2007-08. In the entirety of facts and circumstances, we are inclined to admit the additional evidence and acceding to the alternate request of the ld. DR to remit the issue back to the ld. TPO to decide the same de-novo in view of above observations, for which the assessee has no objection. Allowability of deduction u/s 80IB on the amount of sales tax subsidy - Held that:- Once the sales tax subsidy is held to be Revenue in nature, the same amount becomes the income of the assessee’s i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rice (in short ALP) @ LIBOR + about 2% (assessee s appeal in AY 2006-07) and reducing the ALP adjustment of LIBOR+ about 0.75% (in assessee s and Department s appeal in AY 2007-08). 3. The relevant observations of the ld. CIT(A) in AY 2007-08 are as under:- 4.1.2 The issue of charging of interest on the interest free loan given to the AE was also involved in the appellant s own case for AY 2006-07. In the appeal order passed in Appeal No.CAB/III-434/09-10 for AY 2006-07, it has been held that the action of TPO in making upward adjustment on account of interest free loan given by the appellant to its AE is correct. For this purpose, reliance has been placed upon the decision of ITAT, Delhi A Bench in ITA No.3647/Delhi/2007 dated 09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Congo and supply it to Rubamin, thus assuring the seamless supply of the material for the Cobalt business. The entire transfer pricing study had been undertaken keeping in mind the above background of the appellant-company. The appellant had purchased cobalt from its AE, had exported consumables to its AE, had incurred recoverable expenditure on behalf of its AE and had also advanced a loan to its AE. Since all the transactions were inextricably linked to each other and also .there was a possibility that pricing of one transaction might affect pricing of the other, the appellant resorted to the TNMM method. 4.1 In AY 2006-07, the ld. CIT(A) confirmed the ALP adjustment of LIBOR +2% and in AY 2007-08, on the similar set of facts, reduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the orders of the authorities below. The correspondence in question is with the assessee s banker, i.e. State Bank of India, through which the remittance to M/s. Rubamin FZE, UAE was made alongwith RBI approval. Therefore, the document assumes a regulatory character which is in the files of the schedule bank and RBI. The assessee contends that the other copious evidence did not earlier satisfy the TPO about the business exigencies of advancing the loans; hence the additional evidence. A catena of judgments is available by now wherein the LIBOR+ and varying degree of incremental value has been adopted, which is evident from the fact that ld. CIT(A) has adopted a rate of LIBOR+ 2% in AY 2006-07 and 0.75% in AY 2007-08. In the entirety of fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is ground of assessee is dismissed. 11. Apropos third issue challenging the allowability of deduction u/s 80IB on the amount of sales tax subsidy, the ld. Counsel for the assessee contends that the issue in question is squarely covered in favour of the assessee by the Hon ble Supreme Court judgment in the case of CIT vs. M/s. Shree Balaji Alloys in Civil Appeal No.10061 of 2011 and CIT vs. Meghalaya Steel Ltd, 383 ITR 217. The ld. DR, on the other hand, supported the order of the Assessing Officer. The ground of sales tax subsidy being Revenue in nature is covered against the assessee by ITAT decision in assessee s own case. Once the sales tax subsidy is held to be Revenue in nature, the same amount becomes the income of the assessee s i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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