Bombay Rayon Holdings Ltd. v. ITO (2020) 186 DTR 19 / 203 TTJ 568 (Mum.) (Trib.)

S. 92C : Transfer pricing–Arm’s length price–Loan to AE-Interest should be charged at LIBOR+200 bps.

Tribunal held that loan to the AE is international transaction and it needs to be benchmarked for ALP determination. In the present case the entire amount has been written off as non-refundable.  Accordingly the  interest should be charged at LIBOR+200 bps. (AY. 2009-10, 2014-15)