https://www.taxtmi.com/caselaws?id=334944 ITAT, MUMBAI held that the addition of Rs. 12,83,550 as notional interest on outstanding debtor balances with associated enterprises was not tenable. The Tribunal found that deducting notional interest (whether LIBOR+200 bps or 6.19%) still left the assessee's entity-level margin (21.17% or 19.65%) well above the comparable margin accepted by the TPO (8%), so transactions remained at arm's length. Following precedent, the addition was deleted and the appeal was allowed in favour of the assessee. en-us Fri, 11 Nov 2016 00:00:00 +0530 Fri, 19 Sep 2025 13:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=334944 ITAT, MUMBAI held that the addition of Rs. 12,83,550 as notional interest on outstanding debtor balances with associated enterprises was not tenable. The Tribunal found that deducting notional interest (whether LIBOR+200 bps or 6.19%) still left the assessee's entity-level margin (21.17% or 19.65%) well above the comparable margin accepted by the TPO (8%), so transactions remained at arm's length. Following precedent, the addition was deleted and the appeal was allowed in favour of the assessee. Case-Laws Income Tax Fri, 11 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=334944