2018 (1) TMI 1604

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.... and in the circumstances of the case and in contrary to law, Hyderabad Infratech Private Limited ('Appellant' or 'Company') respectfully craves leave to prefer an appeal against the final assessment order issued by Learned Deputy Commissioner of Income Tax, Circle - 2(2), Hyderabad ('Ld. AO') under section 143(3) read with section ('r.w.s.') 144C(5) & 144C(l3) of the Income-tax Act, 1961 ('Act') dated 25 September 2017. 2. On the facts and in the circumstances of the case and in contrary to law, the final assessment order issued under section 143(3) r.w.s. 144C(5) & l44C(13) of the Act, by the Ld. AO dated 25 September 2017 is bad on facts and the transfer pricing addition of INR 14,66,09,69....

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....on'ble DRP has further erred in upholding the action of Ld. TPO/Ld. AO with regard to the determination of arm's length price ('ALP') of the international transaction i.e., payment of interest on FCCDs issued to its Associated Enterprise (' AE') by not appreciating the following: 6.1 not accepting the economic analysis undertaken by the Appellant in accordance with the provisions of the Income-tax Act, 1961 ('Act') read with the Income Tax Rules, 1962. 6.2 not analyzing the details of search process carried out by the Appellant and arbitrarily disregarded the search process furnished by the Appellant on the reasoning that there was no specific mention for selection of tested party. ....

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....her it is to be calculated under PLR as claimed by the assessee or at LIBOR+ as computed by the TPO/DRP. We find that the Coordinate Bench of this Tribunal in the case of Adama India Pvt. Ltd (cited Supra) at paras 8 & 9 of its order has held as under: "8. We have considered the issue and examined the rival contentions. There is no dispute with reference to the fact that the CCDs were issued in Indian Rupees. Accordingly, following the principles laid down by the Co-ordinate Benches and the Hon'ble High Court as relied on by the assessee in the submissions, we have to hold that TPO has wrongly treated the issuance of CCDs as a loan, by treating it as an external commercial borrowing, ignoring the fact that loan is a debt, where....