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TMI Blog2019 (6) TMI 1691X X X X Extracts X X X X X X X X Extracts X X X X ..... reyas N. Shah For the Department : Shri Aand Mohan ORDER Per Shamim Yahya (AM) : This is an by the assessee for assessment year 2009-10 and another appeal by the revenue for assessment year 2010-11 arising out of respective orders of learned CIT-A for the concerned assessment year. 2. Since the issues are common and the appeals were heard together these are being disposed of by this common or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an adjustment of rupees 66, 28, 068 5. For assessment year 2010-11 the transfer pricing officer arrived at the rate of LIBOR +950 basis points. Accordingly he held that the reasonable rate of interest should be 9.38%. Hence adjustment of rupees 58,52,296 was made. 6. Up on assessee's appeal for assessment year 2009-10 the learned CIT-A confirmed the addition. For assessment year 2010-11 the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee submitted that the rationality of granting the loan should also be considered. That the AE was the start-up company and hence only the assessee could have granted loan as it didn't command any confidence. The learned counsel submitted that commercial rationality should be considered as distinct from commercial expediency. 9. Per Contra learned departmental representative submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r assessment year 2010 - 11 which the assessee accepts. In our considered opinion on the facts and circumstances of the case following the precedent's from ITAT and honourable judicial High Court we hold that arm's-length interest should be computed at the rate of interest of libor +300 bps. That is the rate adopted by the learned CIT-A for assessment year 2010-11 is also directed to be adopted fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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