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TMI Blog2019 (3) TMI 1805X X X X Extracts X X X X X X X X Extracts X X X X ..... permissible under law to include 300 points basis while calculating the interest rate. In view of the fact that the variance does not exceed 5% for the FCCDs issued during the FYs 2008-09 and 3% for the FCCDs issued subsequently interference by the Ld. TPO with the value of the international transaction. The addition, therefore, cannot be sustained and shall be directed to be deleted. In the present case since the difference is less than 5%, therefore, no addition on account of arm s length price could have been made - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act. The assessee was asked to explain its international transaction and whether the same is at Arm's Length Price [ALP]. 6. In its reply, the assessee explained that interest @ 16%, 14.75% and 17.75% has been paid, which includes SBI PLR + 300 basis points to cover the risk because of funds and administrative cost. The assessee further stated that since the FCCDs issued to AEs are rupee denominated, and interest payments are also paid in Indian rupees, therefore, LIBOR is not applicable in the case of the assessee. 7. The TPO was of the firm belief that the 300 basis points over and above the base rate PLR is excessive and needs to be disallowed and accordingly made the adjustment as under: Particulars Amount in !NR Interest paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable and interest rate and amount restricted by the TPO can be understood from the following chart: S No Type of FCCD's Interest rate as per Assessee on the basis of SBI PLR rate plus 300 basis points Amount of interest payable on FCCD's as per Assessee Rate of Interest restricted by TPO to be at Arm's length based on SBI PLR rate Differential rate of interest as per TPO to be adjusted/added to income Amount of Interest payable at Arm's length as per TPO Differential amount of interest as per ITPO to be: adjusted/added to income 1. FCCD's @ 16% as issued during FY 2008-09 (Note 1) 16.00% 210,328,320.00 12.25% 3.75% 161,032,620.00 49,295,700 2. FCCD's @ 14.75% as issued during FY 2009-10 14.75% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/Del/2017 Granite Gate Properties Pvt. Ltd. 19 by the AO/TPO. As such on merit also, no addition could have been made." 13. Similarly, in ITA No. 7025/DEL/2017, the findings given by the co-ordinate bench read as under; "14. Therefore, in view of the above finding of a coordinate bench of this Tribunal in assessee's own case for the immediately preceding years, we are of the considered opinion that the issue is no longer res integra and this bench is required to follow the same in the absence of any change of circumstances. No change of circumstances is pleaded before us. We, therefore, while respectfully following the above decision, reach a conclusion that it is reasonable on facts and also permissible under law to include 300 poi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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