TMI Blog2017 (10) TMI 1621X X X X Extracts X X X X X X X X Extracts X X X X ..... find that as per this judgment also, interest rate for loan advanced is to be determined as per market rate applicable on the basis of interest payable on currency in which the loan has to be repaid. In the present case, loan has to be repaid in EURO and therefore, EURIBOR + 500 basis points is proper for determining the ALP of interest payment as per this judgment also. Thus the revenue gets no help from this judgment rather this judgment of Hpn ble Delhi High Court supports the case of the assessee. Hence we delete the addition made by the AO and TPO. Appeal filed by the assessee is allowed. - IT(TP)A No. 2207/Bang/2016 - - - Dated:- 13-10-2017 - SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng adjustment on the basis of the Spanish prime lending rate ('PLR') vis-a-vis the basis demonstrated by the Appellant for concluding the arm's length nature of interest paid on ECB (i.e. Internal Comparable Uncontrolled Price ('CUP') data furnished by the Appellant / reliance placed on RBI Master Circular). (d) The Ld. Dispute Resolution Panel ('DRP') erred in rejecting the ECB benchmarking analysis furnished by the Appellant as additional evidence, during the course of proceedings before the Ld. DRP. (e) The Ld. AO / TPO erred on facts and in law in rejecting the Transfer Pricing Study maintained by the Appellant, without providing cogent reasons for rejecting the approach adopted by the Appellant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enchmark vis-a-vis external CUP adopted by the Ld. TPO. (g) Without prejudice to the above grounds, the Ld. TPO erred in not undertaking a benchmarking analysis for determining arm's length nature of interest paid on ECB, adopting the Indian Appellant as the tested party. 3 Interest under section 244A of the Act The learned AO has erred in computing interest under Section 244A of the Act pursuant to the refund due to the Appellant. 4 Directions issued by the Ld. DRP The Ld. DRP has erred in law and on facts in not taking cognizance of the objections filed by the Appellant in relation to the draft assessment order issued by the Ld. AO / TP order and confirming the draft order of the Ld. AO. 5 Pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the case laws, it was held that if interest payment is as per RBI master circular then the same can be followed for bench marking the ALP in respect of interest payment on ECB. He also submitted that copy of another Tribunal order rendered in the case of Ion Exchange (I) Ltd. Vs. Addl. CIT in ITA No. 5109/Mum/2013 dated 10.02.2014 is available on pages 24 to 34 and in this case also, similar issue was decided on the same line and in that case also, it was held that ld. CIT(A) has rightly held that according to master circular issued by RBI, the ALP is proper. He pointed out in that case also, the issue in dispute was of payment of interest on ECB. 4. As against this, the ld. DR of revenue supported the orders of authorities below a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
