9911796707
TMI Blog2017 (6) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... he Question Nos.1, 2 and 3 framed are as under : (i) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was right in holding that the Ld. CIT(A) had not validly considered the Transfer Pricing adjustment as required under the law ? (ii) Whether on the facts and in the circumstances of the case and in law the Hon'ble ITAT was justified in ignoring the fact that Transfer Pricing adjustment USD IRS rate is for conversion of floating rate of interest to the fixed rate of interest and export credit rates are in respect of export consignments and not for the purpose of working capital as per the RBI guidelines which are in respect of ECB ? (iii) Whether on the facts and in the circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be considered as a comparable one with the rate of interest at which the loan is given to Associate Enterprises for various reasons. The assessee has got a better goodwill and better reputation. As such, loan at lower rate of interest could be available. All these factors are rightly considered by the Commissioner (Appeals). The mistake that was committed by the Transfer Pricing Officer is corrected by the Commissioner (Appeals). The Tribunal has gone on entirely wrong premise. It could not have considered the period of repayment of loan. However, the period for which the loan was given was required to be considered. 4 Mr.Pardiwalla, the learned senior advocate for the respondent, submits that the Transfer Pricing Officer had considered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd that the assessee has been advanced loan by the foreign bank at rate of 4.79 % and has charged interest on loan advanced to Associate Enterprise at Rs. 7.3%. We could have considered the case of the Revenue had the Revenue brought on record the rate of interest being charged in the country where the Associate Enterprise of the assessee has advanced the loan. Naturally, the period for which loan has been given would be considered and not the period within which the loan has been repaid. However, considering the fact that the assessee has got the loan at 4.79% and has advanced the loan to his Associate Enterprise at 7.3% and the very basis of the order of the Transfer Pricing Officer was on wrong premise i.e. it has considered the rate as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
