2018 (7) TMI 490

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....ct of Assessment Year 200910.   2. The Revenue urges the following questions of law for our consideration : (i) Whether on the facts and circumstances of the case and in law, the Tribunal has erred in ignoring that SBI PLR rate should have been used as benchmark instead of LIBOR since "cost of funds appraoch" is used for charging interest on receivable and the same is in line with the Guidelines prescribed when working capital adjustments are to be made? (ii) Whether on the facts and circumstances of the case and in law, the Tribunal was erred in directing the Assessing Officer to consider LIBOR rates on transactions with the Associated Enterprises, without appreciating that the loans in the instant case, from the Company in India a....

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....on 143(3) r/w Section 144C (13) of the Act. 5. Being aggrieved with the order dated 24th December, 2013, the respondent filed an appeal to the Tribunal. By the impugned order dated 8th July, 2015, the appeal was allowed. The impugned order records a finding of fact that no interest was charged by the respondent assessee to its AEs nor was it charging interest in respect of the services rendered to non AEs even when payments are made beyond the normal credit limit of 60 days. The impugned order also finds that the operating margin earned by the respondent assessee in respect of its AEs transactions was higher than the margin earned from its nonAEs transactions. The impugned order of the Tribunal further holds that the interest chargeable on....