TMI Blog2020 (2) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... took the total income comprising interest as well as other fees charged by the foreign branches for allocation/ attribution to the assessee. In this case, the ALP has not been determined by taking into consideration uncontrolled similar transaction. Interest cannot be taken into account for attribution of income towards service charges/fees and, therefore only the fee charged by the foreign branches can be taken into consideration for making adjustment under transfer pricing provisions. Since none of the parties have come out with the suitable comparables, therefore, we find that the estimation made by the CIT(A) at the rate of 20% is just and proper, however, the same would be only in respect of the fee and charges other than interest r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Rules, 1962 so as to adopt the rates as adopted in those cases? (ii) Whether on the facts and circumstances of the case and in law, the ITAT was correct in directing the Assessing Officer to decide the issue by applying rate of 20% in violation of provision of section 92(3) of the I.T.Act, 1961 when the assessee itself had considered the rate of 50%? 4. In the course of the assessment proceeding the Transfer Pricing Officer passed an order dated 30th September, 2011 under Section 92CA (3) of the Act determining the arms length price of the syndication fee at 100%. He held that the entire amount of ₹ 22,63,47,950/- was received by the assessee. 5. In the assessment order dated 25th January, 2012 which followed, the same was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee for providing the services of the financial analysis of the borrowers, market condition and regulatory environment in India. Since the assessee has provided certain services for that arms length charges can be determined as per the provisions of transfer pricing regulation. The TPO as well as CIT(A) has not brought out any comparable for determination of the arms length price but took the total income comprising interest as well as other fees charged by the foreign branches for allocation/ attribution to the assessee. In this case, the ALP has not been determined by taking into consideration uncontrolled similar transaction. In our view, the interest cannot be taken into account for attribution of income towards service charg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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