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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 ..... short 'AEs') of the assessee 2. Briefly stated relevant facts are that the assessee is engaged in the business of manufacturing and trading of readymade garments and job work besides involving in the activities mainly in various subsidiaries throughout the world. Portfolio of the assessee comprises of shares and securities of many group companies and also of non group companies. In the year under consideration, the assessee declared turnover in traded goods at Rs. 31,33,51,395/-. During the relevant year the assessee had undertaken various International Transactions with its AEs and, among other things, had extended loans to its AEs in dollar denomination in earlier years. The assessee filed his return of income for the AY 2010-11 on 12.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been decided vide PARA 7 of the order in favour of the assessee. The assessee has also submitted a ground-wise written synopsis before us stating as under : Ground-wise submissions in brief are as under Ground No. 1: It is a general in nature and does not require any submissions or adjudication. Ground No. 2-4: TP additions Rs. 46.79.119/-; 1. The assessee is an ultimate holding company of House of Pearl Fashion Group, a multinational ready to wear apparel conglomerate. It is mainly an investment company and also trades in the readymade garments. 2. The major business of assessee (in short HOPFL) comprised of investment activities mainly in various subsidiaries through out the world. Its portfolio comprises of shares and secur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of TPO's Order dated 27.01.2014 for two AE i.e M/s House of Pearl Fashions Limited, USA and M/s Multination Textile Group Limited, Mauritius. 7. Assessee filed a reference before the DRP. The Ld. DRP confirmed the addition pertaining to ALP of the interest transactions. The learned DRP, however, directed to charge interest (ALP) at base rate as on 30th June of the relevant previous year plus 150 basis points as per Para 10 of DRP's order. 8. As per DRP's direction, the SBI base rate as on 30th June, 2009 was about 7.5% and plus 150 basis, the rate works out to be 9.00% as against 13.25% charged by the TPO/AO. The AO, thus worked out the disallowance of Rs. 46,79,119/-- as per such directions of DRP which is contested in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en held in many judgments, some of which are as under:- a) Cotton Naturals India Pvt. Ltd. Vs DCIT [2013-T11-34-ITAT-Delhi-TP]. Approved by Hon'ble Delhi High Court [TS-117-HC-2015 (DEL)-TP]. b) Aurionpro Solutions Limited [TS-474-HC-2017 (BOM)-TP]. c) The Great Eastern Shipping Co. Ltd [TS-534-HC-2017 (BOM)-TP] d) Tata Autocomp Systems Limited [TS-45-HC-2015 (BOM)-TP] e) UFO Moviez India Ltd [TS-883-HC-2016(DEL)-TP] f) Hinduja Global Solutions Pvt. Ltd. Vs. Addl. CIT [2013-T11-122-ITAT-Mumbai]. g) Siva Ventures Limited [TS-218-ITAT-2013 (Chny)-TP]. h) Northgate Technologies Limited [TS- 164-ITAT-2013 (Hyd)-TP]. i) Mahindra & Mahindra Limited [TS-408-ITAT-2012 (Mum)] j) Maharishi Solar Technology Pvt. Ltd. [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the same or similar comparable circumstances by an independent third party. This issue of charging interest from the AE has now widely been held to be that ALP, when the transaction is undertaken in foreign currency, should be on LIBOR plus mark-up of 1 to 2% and cannot be the PLR of Indian Banks etc. Since assesse has already charged more than these rates, thus no adjustment is warranted on these facts. In light of aforesaid judgments, it is prayed that the amount of addition by the AO/TPO, as per the direction of DRP, may kindly be deleted. 4. The learned DR, on 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 asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ALP of the interest at 6% in respect of House of Pearl Fashion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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