2025 (3) TMI 1536

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the direction of Learned Dispute Resolution Panel ("Ld. DRP") on 11.09.2024 for the A.Y. 2021-22. 2. The assessee has raised the following grounds : " 1. That on the facts and circumstances of the case, the final assessment order dated 11 September 2024 (and received by the Appellant on 11 September 2024) passed by the Assessment Unit, Income Tax Department u's 143(3) r.w.s 144(13) read with section 1445 of the Income-tax Act, 1961 (the Act) pursuant to the directions dated 26 August 2024 issued by the Dispute Resolution Panel, Bangalore (DRP) u/s 1440(5) of the Act and read with order dated 3 September 2024 issued by Transfer Pricing Officer (TPO) u/s 92CA(3) of the Act, is bad in law and void ab- initio so far as it is pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... irrelevant as there is no outflow of funds to the CCD holders on maturity of the instrument, without appreciating that the CCDs are converted into equity in Indian Rupee, on maturity. 8. That on the facts and circumstances of the case and in law, the Ld. AO/ Ld. TPO erred by not appreciating that foreign currency loans CCDs needs to be reinstated in the books of Indian company as per applicable accounting standards. 9. That on the facts and circumstances of the case and in law, the Ld. TPQ/ Hon'ble DRP erred in rejecting the benchmarking analysis dated 13th November 2018 undertaken by the Appellant for determining the ALP for interest on OCDs. 10. That on the facts and circumstances of the case and in law, th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at the rate of 10% is at Arm's Length Price ("ALP"). However, the Ld. AO/TPO rejected the bench marking of assessee and bench marked the same at LIBOR rate. Against such bench marking of Ld. AO, the assessee is in appeal before the Tribunal. 4. We have heard the rival contentions and also gone through the record in the light of the submissions made on either side. The only issue involved in this appeal is regarding bench marking of interest on CCDs. The assessee has bench marked the interest on CCDs at 10% and compared the same with the average SBI PLR of 12.5%. Accordingly, the assessee claimed before the Ld. AO/TPO that the iinterest provided at the rate of 10% is at ALP. However, the Ld. AO/TPO has bench marked the interest on CCDs at....