TMI Blog2024 (2) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... R DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: This appeal has been filed by the assessee against the order of ld. CIT(A)-44, New Delhi dated 28.06.2019. 2. Following grounds have been raised by the assessee: 1. On the facts and circumstances of the case, the order passed by the learned Commissioner of Income Tax (Appeals) (CIT(A)} is bad both in the eye of law and on facts. 2. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in sustaining the transfer pricing adjustment of Rs. 5,81,986/- made by the TPO on account of interest charged on foreign currency loan extended to the Associated Enterprise (AE), Jindal Pipes (Singapore) Pte. Ltd. 3. (1) On the facts and circumstances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has filed its return of income in original on 28.09.2012. During the year under consideration, the assessee has advanced loan to Jindal Pipes (Singapore) Pte. Ltd (JPSPL) of around US$ 33,64,847.52, equivalent to Rs. 16,99,24,281/-. The assessee has charged interest of Rs. 19,88,755/- on such advances at the rate of 1 months LIBOR plus 300 basis points which is 3.23% p.a. approx and the same was declared in the return of income filed by the assessee. 4. The above International transaction of interest received of Rs. 19,88,755/-was benchmarked by the assessee adopting CUP method, being the appropriate method. The assessee has considered JPSPL, its Associated Enterprise as the internal comparable because JPSPL (AE) has also taken the loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd thus, made the addition of Rs. 15,02,959/-on the basis of interest at the rate of 5.687% p.a. as under: Particulars Balance/Transaction Amount in INR No. days of Interest Rate (6 months LIBOR + 500 bps) Interest amount in INR New Loan 11.11.2011 32,55,001.22 142 5.687 72,016.14 14.11.2011 15,51,39,500.00 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he other hand, the loan agreement between JPSPL and Citibank was for the period of 3 months which also qualifies as a short term loan. Thus when both the loans are for short term, they are aptly comparable. The assessee further submitted that the loan granted by assessee has also been repaid back to it by JPSPL in the year 2012 itself i.e. within 12 months from the date of grant. 11. With regard to the guarantee in the agreement between Citibank, Singapore and JPSPL, it was submitted that JPSPL has obtained loan from Citibank, Singapore of around USD 2,90,00,000/-. No bank would provide such a huge amount of loan without taking any security in return, the security being any asset or any guarantee. In such circumstances, JPSPL has obtaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is placed on the following judgments: DABUR INDIA LTD. VERSUS ADDL. CIT. RANGE-10. NEW DELHI in 2021 (2) TMI 1250 - ITAT DELHI - Dated.- February 18. 2021. COMMISSIONER OF INCOME TAX-I VERSUS M/S COTTON NATURALS (II PVT.LTD. In 2015 (3) TMI 1031 - DELHI HIGH COURT - Dated.- March 27. 2015. INSLICO LTD. VERSUS DCIT, CIRCLE 11 (11 . NEW DELHI in 2015 (12) TMI 1779 - ITAT DELHI - Dated.- December 4. 2015 M/S E4E BUSINESS SOLUTIONS INDIA PVT. LTD., VERSUS THE DEPUTY COMMISSIONER OF INCOME-TAX CIRCLE-3 (1) (2) BANGALORE AND VICE- VERSA in 2015 (11) TMI 1545 - ITAT BANGALORE - Dated.- November 4, 2015. GHARDA CHEMICALS LTD. VERSUS DEPUTY COMMISSIONER OF INCOME-TAX 9 (1). MUMBAI in 2009 (11) TMI 653 - ITAT MUMBAI - Dated. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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