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TMI Blog2020 (3) TMI 1475X X X X Extracts X X X X X X X X Extracts X X X X ..... harged only under LIBOR rate and not under PLR rate. In view of the above, we are unable to uphold the orders of the authorities below. Accordingly, the orders of authorities below are set aside and the Assessing Officer is directed to charge interest under LIBOR rate. Disallowance of amount reimbursed for non-deduction of tax - Assessee approached the Authorities for Advance Rulings ( AAR ), whether the reimbursement expenditure is liable for TDS or not - HELD THAT:- It is not in dispute that the matter is now pending before the AAR and also the Apex Court. If the Apex Court confirms the order of the Madras High Court, the AAR has to decide the issue one way or the other. Till the final decision is taken by the AAR, in view of the Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. Representative is that the interest has to be levied only on the basis of the LIBOR and not under PLR. The Ld. Representative for the assessee very fairly submitted that he is not disputing the charging of interest on the delayed receipt of money from non-residents. 4. On the contrary, Shri S. Ramakrishnan, the Ld. Departmental Representative submitted that the source of funds on which the interest was charged is from India. Therefore the Indian rate of interest has to be levied. Hence, the DRP adopted PLR rate instead of LIBOR rate. On a query from the Bench, whether the charging of interest is on the delayed payment of money from foreign country or not, the Ld.DR submitted that the levy of interest is on the delayed payment by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the Apex Count against the judgment of the Madras High Court. The assessee s appeal against the order of the Madras High Court is also pending before the Apex Court. In the facts and circumstances, the Ld. Representative submitted that the matter be kept pending till the AAR decide the issue one way or the other. The Ld. Representative further submitted that in the earlier assessment year, this Tribunal has remitted back the matter to the file of the Assessing Officer for reconsideration with a direction to decide the issue after the decision of the AAR. The Ld. Representative has also placed his reliance in Section 245RR of the Income Tax Act, 1961 (in short the Act ) and submitted that when the issue is pending before AAR, the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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