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TMI Blog2018 (8) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... nitweard Limited, Bangladesh obtained loan at Bangladesh at any rate less than this expected rate, he should not have accepted. The tested party in the case of Nor Pearl Knitwear Limited, Bangladesh and in the case of other two concerns is the assessee only. In respect of the same tested party the TPO cannot adopt two different yardsticks. Shifting of the testing parties in the same breath is not permissible. We, therefore, in this set of circumstances agree with the Ld. AR that since loans or advances in case of the two other concerns also in foreign currency, and all the three persons stand in the same footing, as such, the same treatment has to be given to them equally. With this view of the matter, we direct the AO to re-compute the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led his return of income for the AY 2010-11 on 12.10.2010 declaring a total loss of ₹ 7,94,39,127/- and during the scrutiny proceedings, in view of the International transactions entered into by the assessee with the associated enterprises, AO referred the determination of the Arm s Length Price (for short referred to as ALP ) of the International transaction to the TPO. TPO vide order dated 27.01.2014 determined the ALP of the interest transaction with the AEs at ₹ 62,50,069/- by taking the ALP of the interest at 14.88%, basing on the SBI PLR for the FY 2009-10 at 11.88% PLUS 300 basic points. Pursuant to the draft assessment order assessee carried the matter to the Ld. DRP and Ld. DRP vide order dated 21.11.2014 approved the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s subsidiaries through out the world. Its portfolio comprises of shares and securities of many group companies as also of non group companies. The group profile has been noted by the TP in Para 1 of his Order. 3. The assessee during the year under consideration had undertaken various international transactions with its AEs, which have been recorded by the TPO in Para 1.1 of his Order 4. The assessee had extended the loans to some of its AE's in Dollar denomination and the 3 AE's, to whom loans were extended during the year are as under:- 1. Nor Pearl Knitwear Limited, Bangladesh @ interest rate of 6% per annum. (Accepted by TPO to be at ALP vide Page No. 12, Para 3.3 of TPO's Order.) 2. House of Pearl Fashions Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us worked out the disallowance of ₹ 46,79,119/-- as per such directions of DRP which is contested in this Appeal. 9. As regards the loan to AE's situated in USA from whom interest @ 6% has admittedly been charged by the assessee, it is prayed the same is required to be held as an appropriate ALP and TPO's/DRP's view of charging interest @ 13.25% based on PLR of SBI is required to be rejected. In the latest judgements of Hon'ble Delhi ITAT in Assessee's own [ITA No. 1589/Del/2014] directed to A.O to compute the ALP of the Interest at 6% in respect of House of Pearl Fashions Limited, USA and Multinational Textile Group Limited. In this appeal before your honour, the Assesee Company has already charged interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Limited [TS- 164-ITAT-2013 (Hyd)-TP]. i) Mahindra Mahindra Limited [TS-408-ITAT-2012 (Mum)] j) Maharishi Solar Technology Pvt. Ltd. [TS-306-ITAT-2012 (Del)-TP]. k) iGate Computer System Ltd [TS-250-ITAT-2015 (Pun)-TPJ The aforesaid judgment of M/s. Cotton Naturals India (P) Ltd. has been upheld by the Hon'ble Delhi High Court has reported in TS-117-HC-2015 (Delhi)-TP. It has been amongst other held in Para 22 as under: The conditions prevailing in the market in which the respective parties to the transactions operate, including the geographical location and the size of the markets, the laws and Government orders in force, costs of labour and capital in the markets, overall economic development an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, relied on the orders of the authorities below. 5. Addressing to the issue under consideration, we observe that the same is covered in favour of the assessee and against the Revenue by the decision of Co-ordinate Bench of Tribunal dated 08.11.2017 in assessee s own case for A.Y. 2009-10 (ITA No. 1589/Del/2014, vide para 7 of the order, which reads as under : Now coming to the rate of interest, according to the assesse 6% offered in respect of House of Pearl Fashions Limited, USA is proper, whereas in respect of Multination Textile Group Limited a nominal interest at LIBOR plus 200 basic points may be charged However, the Ld. AO charged it at 16% reduced by the Ld. CIT (A) to the SBI base rate as on 30th June of the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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