advanced the loan at the price of 6 month USD
BBA LIBOR plus 2% per annum."
10. The ld. CIT(A) has considered ... appellant that as the said benchmarked transaction carried
interest of LIBOR plus 1.25%, and as independent benchmark is available for the same
borrower, no separate
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 ... Date of Agreement 26.04.2010
Rate of Interest LIBOR 3M + 300 bps
Tenor 3 Years
Due Date of Interest After 3 years
Security from
considering notional rate of interest at average
comparable rate instead of LIBOR rate.
8. The order passed ... loan. The
base rate is accordingly taken as 12 Months US Dollar LIBOR
The above filters have been relaxed wherever required so as to have
earlier years
which remains unpaid, on a daily basis of six-month LIBOR rate
along with 400 basis point as the most appropriate comparable
uncontrolled ... year as comparable
transaction, where interest charged was at the rate of LIBOR plus
2%, i.e., 2.23 percentile. Thus, it was claimed that
application in this regard and further that an international
rate like LIBOR or EURIBOR would come into play as the loan in
question was denominated ... interest and noted
in para 104 of his order that the average LIBOR rate as per the
decision rendered by the Tribunal in another case
compute the
Arm's Length Price (ALP) by adopting LIBOR rates to benchmark the
receipt of interest by the assessee from its Associated Enterprise ... account of risk adjustment to be
applied over and above the LIBOR rate in the facts and circumstances of
the case.
3. We have heard
foreign subsidiaries in UK and Thailand and had
charged interest rate of LIBOR plus 1.1% and 7% respectively
whereas the TPO had applied the interest ... 2014 ITA
No.3495/Del/2014 LIBOR plus 1.1% and the loan taken by the UK
subsidiary from ABM AMRO Bank was at LIBOR
interest in
respect of realization from AE based at UK shall be LIBOR instead of
PLR/Profit margin taken by the TPO. Since the realization ... from the AE
and in the foreign currency, therefore, the LIBOR would be the
appropriate comparable arm's length rate. Hence, by considering
assessee paid interest of 4%,
which is required to be compared with LIBOR/SIBOR under CUP. The
average one year SIBOR during the year ranged ... observed that various judicial forums have held that for international
loan transaction LIBOR is appropriate CUP. A few of them are Four
Soft Ltd., Quark
facts in directing to add appropriate spread on the LIBOR
rates as against using the average LIBOR rates itself for computing
notional interest on outstanding ... accordingly by taking note of facts, directed the AO to
adopt the LIBOR rates with an appropriate spread befitting the
credit standing
