TMI Blog2021 (12) TMI 1440X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Revenue : Shri Rajendra Kumar, CIT (DR) ORDER Per Bench The instant batch of seven appeals pertains to a single assessee M/s. Maanaveeya Dev. Finance (P) Ltd. All other relevant details thereof reads as follows: S.No A.Y ITA No Order under challenge Proceedings u/s 1 2011-12 149/Hyd/2017 Dy.CIT Circle 16(2) vs. Maanaveeya Dev. Finance Private Ltd 143(3) r.w.s 92CA (3) 2 2011-12 134/Hyd/2017 Maanaveeya Dev. Finance Private Ltd vs. ACIT, Circle 16(2) -do- 3 2012-13 565/Hyd/2017 Maanaveeya Dev. Finance Private Ltd vs. DCIT, Circle 16(2) 143(3) r.w.s 92CA (3) rws 144C(5) 4 2013-14 1507/Hyd/2018 -do- 143(3) rws 92CA 5 2013-14 1506/Hyd/2018 Dy.CIT Circle 16(2) vs. Maanaveeya Dev. Finance Private Ltd -do- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed strong reliance on the TPO s respective orders. 5. We find no merit in assessee s stand. We make it clear first of all that it was very much imperative for the assessee to place on record that all the corresponding CCDs relevant scheme throwing sufficient light qua the currency sought to be forming part thereof. Page 13 (Annexure B) in assessee s Paper Book in A.Y 2012-13 itself makes it clear that the corresponding FDI had been remitted/received in Euros only. Coupled with this, its impugned interest payment has also witnessed foreign exchange fluctuation loss of Rs.39.91 crores as well on account of conversion in foreign currency. Coupled with this, the assessee had itself made it clear regarding absence of any agreement qua interest payment as well. It has also not placed on record it s AE s financial statement. All these relevant facts lead us to an irresistible conclusion that the learned lower authorities, and more particularly the DRP directions in A.Y 2012-13, have rightly declined the assessee s objection reading as under: Ground of Objections 1. The Learned Assessing Officer (AO){Transfer Pricing Officer (TPO) are erroneous in law and on the facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PLR ING Vysya Bank 10.90% to 11.25% Standard Chartered Bank 12.00% Rabo India Finance Ltd 10.50% Axis Bank Ltd 11.00% It was submitted that the assessee company agreed to pay interest @ 11 %, which amounted to Rs. 15:34,84,244/, (Emphasis supplied). It used Comparable Uncontrolled Price method (CUP) to determine the arm's length price for the interest, Considering the above interest rates of various banks. 11 % of interest incurred by the assessee company on CCO of Okio credit is considered at ALP under CUP, This was not accepted by the TPO who relying on the following decisions of the Hon'ble ITAT in the cases of Foursoft Ltd, Market Tools, Or Reddy laboratories held that UBOR is appropriate for benchmarking of ALP. The assessee submitted the case laws cited by the TPQ, in these cases the issues was that the Associated Enterprises have availed loans from the Indian company and in our case it is the reverse i.e. the company has availed a loan from the holding company in the form of CCDs and are payin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are completely distinguishable and reliance is also misplaced. The decision in the case of Shrenuj Co Ltd, the issue was of interest free loan to its only owned subsidiary, hence distinguishable from the facts of the present case. The case of KPIT Cummins Infosystems Ltd, the issue was when assessee advanced a loan to its AE which by assessee's own admission is not the case hence reliance on the above decision in view of the facts of the assessee's case is misplaced. Similarly, the facts cited in other case laws cited by the assessee are also distinguishable from the facts of the present case before this Panel. Having considered the case laws, it is to be examined whether the claim of the assessee that the said CCDs were in fact received in INR. On consideration of the submissions made along with Form 35A filed on 21.04.2016, it is noticed that from pages 9 to 13 of tile written submissions, a copy of the Form No. 3CEB Issued by fv1/s Venugopal Chenoy, Chartered Accountants, Hyderabad is enclosed. The said form is perused, at page 13 of the written submissions at Annexure 'A' it indicates the name, relationship and brief description of business. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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