thus arrived at as under:
Basic interest rate for the credit LIBOR+400 basis points
rating of the AE
Add: Transaction Cost 300 basis points ... Rate LIBOR + 700 basis points
Add: Adjustment for security Not computed
Final CUP Rate > LIBOR + 700 basis points
As the currency in which
work out the ALP of interest by
applying only LIBOR instead of LIBOR + credit spread on account of the risk
profile of the borrower ... erred in not appreciating that LIBOR represents the inter bank
interest rate, which is of highest credit rating, whereas the loan was given
foreign currency. The transaction being
an international transaction, LIBOR rate would come into play and it
should be looked upon based on commercial principles ... Reddy's Laboratories Limited, Hyderabad.
of the assessee was that LIBOR+ 2% should be adopted as arms length
interest
accordingly, loan available in the international
market with interest rate computed considering Libor rates shall
be applied for benchmarking.
3.2 Without prejudice, the assessing officer ... accordingly, arm's length interest rate
shall be computed considering Libor rates applicable on foreign
denominated loans.
4.6 Without prejudice the assessing officer
fixed keeping in mind the
London Inter-Bank Offered Rate (in short LIBOR).
(xvi) As regards rejection of counter claims, the arguments advanced on
merits ... discretion of the arbitral Tribunal to award interest was not
circumscribed by LIBOR. In support of this submission, reliance was
placed on a judgment
erred in law
by using Prime Lending Rate instead of LIBOR for determining the
arm's length interest amount.
5.7 The learned ... free loan given by the assessee to its AE, viz. ADSIL, the
LIBOR rate prevailing as on 31.03.2005 should have been considered
Percentage ALP of the Interest Percentage Adjustment
charged
EKC 21,16,958 LIBOR+1 1,60,78,033 10.25% 1,39,61,075
International ... directed that the
interest shall be charged @6 months LIBOR + 350 Basis point to EKC
International FZE, UAE and 6 months LIBOR + 500 basis point
allowable expenditure and if allowable then the amount allowable is as per
LIBOR or PLR. Hence all these were heard together and are being disposed ... debentures ("CCD")by following an ad-hoc approach of
using LIBOR rates thereby grossly erred in:
3.1. upholding the rejection of comparability analysis
Interest charged at Rs.
Rua 14,25,759/- @ Libor plus
200 BPs
3. Torrent Pharma Short term finance Various Interest charged and
Philippines squared ... during amount benchmarked at Rs.
the year 12,62,288/- @ Libor +
100Bps
13.1. In response to SCN issued by TPO, assessee submitted that
earlier order, directed the AO/TPO to compute interest by
adopting LIBOR rate plus 3.25% for the outstanding period.
13. The Ld A.R submitted ... ordinate bench of
Tribunal has sustained the addition to the extent of Libor rate plus 150 bps on
an identical issue in the earlier years
