TMI Blog2018 (7) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... AE would othewise have to repay within the perod of 60 days. The aforesaid finding of ours also finds support from the question of law at Sr. No.2 as proposed by the Revenue. Thus, in these circumstances, in the facts of this case order of the Tribunal computing interest at LIBOR rates as the rate prevailing in country where the loan is received / consumed by the AE cannot in these facts be faulted as it is in line with the decision of this Court in Tata Autocomp Systems Ltd. (2015 (4) TMI 681 - BOMBAY HIGH COURT). - INCOME TAX APPEAL NO. 56 OF 2016, AND CROSS OBJECTION NO. 8 OF 2016 IN INCOME TAX APPEAL NO. 56 OF 2016 (ARISING FROM ITA NO. 487/MUM/2014) - - - Dated:- 3-7-2018 - M.S. SANKLECHA SANDEEP K. SHINDE, J.J. Mr. Arvind P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gst others to its Associated Enterprises (AEs). In view of the delayed recovery of export receivables and expenses by the respondents from its AEs the Transfer Pricing Officer (TPO) made an adjustment of ₹ 10.32 crores by charging notional interest thereon by applying the interest rate at 12.25% i.e. SBI PLR (Prime Lending Rate). This by negativiting the respondents' contention that the interest to be charged be bench marked at LIBOR (London Inter Bank Operative Rate). In terms of the order of the TOP, the Assessing Officer passed a draft assessment order dated 8th February, 2013 under Section 143(3) r/w 144C of the Act. 4. Being aggrieved, the respondents had filed an application to the Dispute Resolution Panel (DRP) from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the Revenue submits that the aforesaid decision in Tata Autocomp Systems Ltd. (surpa) would have no application to the facts of the present case as the issue therein was in respect of loans given to the AEs whereas the issue in this case is extending credit beyond the normal period of credit provided by the respondent assessee to its AEs and nonAEs. Thus, this appeal requires admission. 7. We note the finding of fact by the Tribunal that no interest is charged by the respondent assessee from its AEs as well as its nonAEs for delayed payment of export receivable and expenses. Further finding of fact that operating margin earned by the respondent assessee in respect of its transactions with AEs is higher than that earned on transa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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