TaxTMI 
TaxTMI 
2017 (10) TMI 1621
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.... are as under. "The grounds stated hereunder are independent of, and without prejudice to one another. The Appellant submits as under: 1 The Assessment Order issued by the Assessing Officer and the Transfer Pricing Order issued by the Transfer Pricing Officer are bad in law (a) The Ld. Deputy Commissioner of Income-tax, Circle 7(1)(1) ('Ld. AO') / Ld. Deputy Commissioner of Income Tax (Transfer Pricing) - 2(2)(2) ('Ld. TPO') erred on facts and in law in making an addition of INR 14,215,217 to the total income of the Appellant on account of adjustment to the arm's length price with respect to interest paid on External Commercial Borrowing ('ECB') availed from its associated enterprise ('AE'). (b....
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....the Appellant as the basis for availing a Euro denominated ECB, vis-a-vis the LIBOR, which is prevalent for transactions between banks for short term loans. (c) The Ld. AO / TPO erred on facts and in law in computing the effective rate of interest paid on ECB at 7.90% vis-a-vis 6.65% demonstrated by the Appellant based on 6-months EURlBOR rate prevailing during FY 2011-12. (d) The Ld. AO / TPO erred on facts and in law in adopting the foreign AE (viz. Acciona Energia Internacional SA) as the tested party, disregarding the fact that the tested party ought to taken as the Appellant, being resident of the country wherein the ECB has been received / consumed (viz. India). (e) The Ld. AO / TPO erred in adopting the Spanish PLR as the ex....
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....udice to one another." 3. It was submitted by ld. AR of assessee that interest on ECB is paid by the assessee as per the loan agreement between the assessee and its AE dated 18.11.2010 copy available on pages 167 to 172 of paper book. In particular our attention was drawn to page no. 168 of paper book and it was pointed out that agreed rate of interest is 6 months EURIBOR + 500 basis points and the period of loan is 8 years. Thereafter he drawn our attention to RBI circular no. RBI/2011-12/356 dated 01.07.2011 copy available on pages 112 to 166 of the paper book and in particular, our attention was drawn to page no. 120 of paper book and it was pointed out that for loan having maturity period of more than 5 years, the interest can be paid....