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
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
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
nterest rate of L ondon Inter- Ban k Offer Rate ("LIBOR") pl us 2
percent pe r annum payabl e annuall ... agreed for an i nterest rate revi sion i n 2009 from LIBOR +200
bps to LIBOR + 350 bps based on Barcl ay bank
facts of the case in adopting
and applying Libor + 2.8% as ALP interest rate as against Libor + 3%
rate of interest paid by the Appellant ... 2003 for a period of 5 years with fixed rate of
interest @ Libor + 3%, and therefore, the said rate of interest cannot be
reviewed year
been held
that if the loan is made in foreign currency then LIBOR (not domestic lending rates) should
be used as a benchmark:
Delhi High ... loans given to AE should be benchmarked at then relevant currency
denominated LIBOR rate, for which it placed reliance on several judgments including the
jurisdictional
appreciating the fact that the Appellant has charged interest at 6 months
LIBOR + 400 bps on the advances given to the AE after considering ... internal CUP
of:
a) LIBOR+200 bps being interest charged by SB! on foreign currency loans taken by
MIL: and
b) LIBOR+350 bps being
Addendum Agreement Dated 14.01.2011
for an annual interest rate of LIBOR + 300 bps to be paid
on the loan amount applicable from 14.04.2011 till ... contention of the assessee-company of
charging rate of interest as LIBOR + 300 bps on the
grounds that (i) assessee-company is a tested party
subsidiary Company should be worked out
at a rate of interest at LIBOR plus 200 basis points as against interest
at LIBOR plus 100 basis ... subsidiary Company and the prevailing
rate of interest under CUP Method was LIBOR plus 100 basis points as
the Appellant Company itself has availed
