2018 (3) TMI 1901

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..... than applying LIBOR rate of interest - HELD THAT:- As relying on TECNIMONT ICB HOUSE, MUMBAI VERSUS DCIT-9 (3) , MUMBAI [ 2015 (7) TMI 602 - ITAT MUMBAI] we hereby hold that in the case of the assessee also LIBOR rate may be adopted instead of Prime Lending Rate. It is ordered accordingly.
SHRI N.R.S. GANESAN AND SHRI A.MOHAN ALANKAMONY, JJ. ORDER Appellant by : Shri R. Vishwanathan,FCA Res .....

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..... e assessment year 2012-13 on 30.11.2012 declaring total income of Rs.Nil after claiming deduction of ₹ 6,87,40,161/- U/s.10AA and declaring book profit of ₹ 5,65,74,765/- under MAT provisions of the Act. Subsequently the assessee filed revised return of income on 29.01.2014 declaring income of Rs.Nil after claiming deduction of ₹ 7,80,04,473/- U/s.10AA of the Act and declaring bo .....

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..... s. DCIT in ITA No.487/Mum/2014 vide order dated 08.07.2015, wherein it was held that while worked out deemed notional interest on the delay in repatriation from foreign AEs, LIBOR rate will be most appropriate. It was therefore pleaded that relief may be granted accordingly. The Ld. DR on the other hand relied in the orders of the Ld. Revenue Authorities. 5. We have heard the rival submission and .....

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..... placed on the following decisions, wherein the Hon'ble Tribunals has upheld use of LlBOR for the purpose of benchmarking loan/advance given to foreign AE's: (i) Everest Kanto Cylinder Ltd Vs ACIT (L TU) (ITA No 7073/Mum/2012) (Mumbai Tribunal) (ii) M/s PMP Auto Components P. Ltd, (ITA NO. 1484/Mum/2014) dated 22 August 2014 Hinduja Global Solutions Ltd Vs ACIT (145 ITD 361) (2013) (Mu .....

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..... al period was in the nature of deemed loan in the hands of AEs and require transfer pricing adjustment.Accordingly, we do not find any infirmity in the transfer pricing adjustment made. However, we direct the AO to charge interest by applying LIBOR rate." In view of the decision of the Tribunal cited supra and the other decisions cited by the Tribunal in the case of Tecnimont ICB House supra, we .....

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