https://www.taxtmi.com/caselaws?id=773878 ITAT Mumbai held that the currency of loan repayment determines the applicable interest rate for transfer pricing purposes. The assessee charged 3.8% interest (1-year LIBOR + 2.5%) on a loan to its Dubai AE. The tribunal directed the assessee to provide evidence of the agreed repayment currency, as it was unclear from records whether repayment would be in Indian rupees or US dollars. Based on this evidence, the AO/TPO would determine the appropriate method for computing arm's length interest rates, following the precedent that repayment currency governs the applicable rate of return. en-us Thu, 05 Jun 2025 00:00:00 +0530 Fri, 27 Jun 2025 12:51:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773878 ITAT Mumbai held that the currency of loan repayment determines the applicable interest rate for transfer pricing purposes. The assessee charged 3.8% interest (1-year LIBOR + 2.5%) on a loan to its Dubai AE. The tribunal directed the assessee to provide evidence of the agreed repayment currency, as it was unclear from records whether repayment would be in Indian rupees or US dollars. Based on this evidence, the AO/TPO would determine the appropriate method for computing arm's length interest rates, following the precedent that repayment currency governs the applicable rate of return. Case-Laws Income Tax Thu, 05 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773878