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TMI Blog2015 (4) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT, MUMBAI) to reach the conclusion that ALP in the case of loans advanced to Associate Enterprises would be determined on the basis of rate of interest being charged in the country where the loan is received/consumed. Mr. Suresh Kumar the learned counsel for the revenue informed us that the Revenue has not preferred any appeal against the decision of the Tribunal in VVF Ltd. (supra) and Tech Mahindra Ltd. (supra) on the above issue. No reason has been shown to us as to why the Revenue seeks to take a different view in respect of the impugned order from that taken in VVF Ltd. (supra) and Tech Mahindra Ltd. (supra). The Revenue not having filed any appeal, has in fact accepted the decision of the Tribunal in VVF Ltd. (supra) and Tech Mahind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BOR rate is not applicable to the loans for which foreign currency has to be purchased by the Lender as in assessee's case ? (c) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in deleting the adjustment made by the TPO at ₹ 1,50,56,737/- applying 10.25% rate of interest per annum to the interest free loan advanced by the assessee to the AE taking into account the prevalent domestic rate of interest payable on working capital loan and which govern the lending and borrowing market in India ? (d) Whether on the facts and in the circumstances of the case and in law, the Tribunal was correct in relying on the RBI circular pertaining to advancement of pre-shipment export credit and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of lending rate charged by the banks in India. The Assessing Officer passed a draft assessment order in line with the order of the TPO. 4. Being aggrieved, the respondent - assessee carried the draft assessment order to Dispute Resolution Panel (DRP) The DRP enhanced ALP i.e. the interest on the loan given by the respondent-assessee to its German Associate Enterprise to 12%. Consequent to the directions of DRP, the Assessing Officer by an assessment order dated 19.9.2011 charged interest of ₹ 1.76 crores on the above account as a part of the respondent-assessee's income. 5. Being aggrieved, the respondent - assessee preferred an appeal to the Tribunal. The Tribunal by the impugned order held : (a) that the interest fre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch Mahindra Ltd. (supra) to reach the conclusion that ALP in the case of loans advanced to Associate Enterprises would be determined on the basis of rate of interest being charged in the country where the loan is received/consumed. Mr. Suresh Kumar the learned counsel for the revenue informed us that the Revenue has not preferred any appeal against the decision of the Tribunal in VVF Ltd. (supra) and Tech Mahindra Ltd. (supra) on the above issue. No reason has been shown to us as to why the Revenue seeks to take a different view in respect of the impugned order from that taken in VVF Ltd. (supra) and Tech Mahindra Ltd. (supra). The Revenue not having filed any appeal, has in fact accepted the decision of the Tribunal in VVF Ltd. (supra) an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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