Tribunal considered the question whether
the+/-5% range would be available when libor
rate was considered for bench marking the
arms length pricing with respect ... coordinate bench held as under:
xxxxxxxxxxxxxxxx
06. Mumbai Bench had held that libor rates
were also an averaging of rate of interest
charged or paid
earned on
interest-free advances made to USL Holdings and
application of LIBOR of 1.009 + 2. In this regard
also we feel that this issue
that assessee's
receipt of interest which was within +/-5% of libor
did not require any ALP adjustment. Addition
Tribunal is right in law to direct the
TPO to adopt LIBOR+300 basic points as the
interest rate without giving any justification
foreign
currency, interest rate changed which is within
+/-5% of LIBOR is at arm's length. The relevant
observations of the Tribunal
payers was in foreign currency and the standard
procedure is LIBOR + BASIS POINTS prescribed by
RBI/Regulatory authority for that period
payers was in foreign currency and the standard
procedure is LIBOR + BASIS POINTS prescribed by
RBI/Regulatory authority for that period?"
4. Learned counsel
nature in law in directing Transfer Pricing
Officer to consider the LIBOR+200 basis as the
interest rate ignoring that in 92CA order, the
Transfer ... Pricing Officer has considered the 6 months
LIBOR+400 basis points in case of foreign currency
invoices and same has also been rightly upheld
