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18. Fact being identical, we follow the above order of the Co-ordinate Bench and dismiss the 5th ground of appeal.

19. The 6th ground of appeal

6. On facts and in circumstances of the case and in law, the learned CIT (A) erred in confirming the determination of Arm's Length Price by the Transfer Pricing Officer at LIBOR + 400 bps instead of LIBOR + 300 bps on loan given by the appellant to its Hindustan Construction Co. Ltd. 9 ITA Nos. 2351 & 2432/Mum/2018 Associated Enterprise. The transfer pricing adjustment of Rs.1,14,19,186/- be deleted.

However, the TPO calculated the interest income on ICD with Mauritius by taking into account (i) period for which interest received, (ii) days, (iii) LIBOR + 400 int. rate, (iv) principal outstanding, (v) interest in FC. Thereby the TPO worked out the difference to be adjusted at Rs.11,419,186/- (Rs.50,191,341/- by adopting LIBOR + 400 int. rate minus Rs.38,772,155/- by adopting LIBOR + 300 int. rate). The AO followed the order of the TPO. In appeal, the Ld. CIT(A) upheld the ALP by the TPO which was as per alternative without prejudice submission by the assessee.

21. Before us, the Ld. counsel for the assessee submits that this is the first year of transfer pricing addition.It is further stated that in the TP proceedings, Hindustan Construction Co. Ltd. 10 ITA Nos. 2351 & 2432/Mum/2018 the assessee was called upon to show cause why ALP of interest be not determined by the Prime Lending Rate Method using either Indian Corporate Bond Rates or SBI PLR. The assessee submitted before the TPO that the rate of interest charged by it is more than the prevailing market rate. However, as a defence against ALP by the PLR method, the assessee submitted that since the AE had borrowed Exim Bank at that rate of interest, LIBOR plus 400 bps may be considered as the comparable rate. The Ld. counsel further submits that the TPO has reproduced the submissions on the comparability of lending to the AE by Exim Bank and by the assessee; the comparable security of the two loans has been tabulated in the TP order. The Ld. counsel submits that without countering or contradicting any of the submissions, the TPO proceeded to calculate the ALP at LIBOR + 400 bp being the rate charged by Exim Bank. Thus it is explained by him that the discount to the commercial bank rate should be deemed to be reasonable and the LIBOR + 300 basis point rate should be said to be ALP.

On the other hand, the Ld. DR submits that as the assessee has not found any fault in the 'Computation of interest income on ICD with Mauritius', which is enclosed as Annexure A of the order of the TPO dated 27.01.2015, the same should be accepted.

22. We have heard the rival submissions and perused the relevant materials on record. In the Instant case we find that the assessee has advanced an unsecured loan amounting to USD 4,30,00,000 equivalent to INR 191,00,60,000 to its AE i.e. HCC Mauritius Enterprises Ltd. (HMEL) for the purpose of acquisition of shares of Karl Steiner AG, a Switzerland based total Hindustan Construction Co. Ltd. 11 ITA Nos. 2351 & 2432/Mum/2018 service contractor operating in the European market. The tenure of loan was 3 years and interests were payable @ LIBOR + 300 bps on completion of tenure of the loan. The assessee submitted before the TPO that the rate of interest charged by it is more than the prevailing market rate. The TPO has reproduced the submissions of the assessee on comparability of lending to the AE by Exim Bank and by the assessee at page 22 and 23 of his order. The TPO has tabulated at page 23 the comparable security of the two loans. However, we find that the TPO has not examined the submission by the assessee that the security that the assessee had was better than the security obtained by Exim Bank. As the TPO has arrived at the ALP at LIBOR + 400 bps, without contradicting the submission of the assessee and the adoption of LIBOR + 400 bps is not based on any reasoning, we delete the transfer pricing adjustment of Rs.11,419,186/-. Thus the 6th ground of appeal is allowed.