2019 (3) TMI 1805

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....r and involve common grievance, they are being disposed of by this common order for the sake of convenience and brevity. 2. At the very outset, the ld. counsel for the assessee stated that the common grievance in both the appeals relates to the adjustment on account of interest payable/paid by the assessee on Fully and Compulsorily Convertible Debentures [FCCDs] as issued by it to its Associated Enterprises [AEs]. The quantum of adjustment is same in both the years amounting to Rs. 10,70,37,882/-. 3. The ld. counsel for the assessee fairly conceded that the issues are identical in both the years. On such concession, we heard the ld. counsel for the assessee on the facts of assessment year 2013-14. 4. During the course of assessment....

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....2.00 Interest arm's length of 11.75% Rs. 13,25,32,879.90 Adjustment Rs. 3.38,38,182.10   Particulars Amount in INR     Interest paid at I 7.75% Rs. 14,14,32,000.00 Interest arm's length of 14.75% Rs. 11,75,28,000.00 Adjustment Rs. 2,39,04,000.00 Total Adjustment Rs. 10,70,37,882.10 8. The assessee raised objections before the DRP, but without any success. 9. Before us, the ld. counsel for the assessee stated that identical issues were considered by the Tribunal in assessee's own case in ITA Nos. 7022 to 7024/DEL/2017 for assessment years 2009-10 to 2011-12. It is the say of the ld. counsel for the assessee that the Tribunal has decided the quarrel in favour of t....

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....11-12(Note 2) 17.75% 141,432,000.00 14.75% 3.00% 117,528,000.00 23,904,000   Total   518,131,382.00     411,093,499.90 107,037,882. 12. On the basis of the aforesaid facts, the co-ordinate bench in ITA No. 7022/DEL/2017 and others had considered this issue and held as under: "27. On merit also, the AO/TPO made the addition on account of differential rate of interest on FCCDs. The assessee applied the interest rate on the basis of SBI PLR rate plus 300 basis points for the reasons that the FCCDs being unsecured and hybrid/quasi equity instrument as compared to plain vanilla loan instrument. Therefore, the SBI PLR plus 300 basis points over it was reasonable an....