Adjustment in respect of international transaction of Payment of Interest on ‘Fully Convertible Debentures’ by upholding the contentions that LIBOR was not applicable as there was no lending/borrowing in foreign currency and assessee had issued rupee dominated debentures. Also in earlier year, TPO has taken Indian rates for charging interest on FCDs and not LIBOR rate, and therefore the same transaction following/percolating from previous years should not be taxed on different basis. (AY 2011-12)
Altico Capital India Pvt. Ltd v. ACIT (2023) 221 TTJ 365 (Mum) (Trib)/JCIT v. Clearwater Capital Partners (I) (P) Ltd ( 2023 ) 221 TTJ 365 (Mum ) ( Trib)
S. 92C : Transfer pricing-Arm’s length price-Avoidance of tax-International transaction-Specified domestic transaction-Adjustment on account of interest paid on fully convertible debentures. [S.92CA]