Dismissing the appeal of the revenue the Court held that, where assessee extended loan to its AE, adjustment should be made at average LIBOR rate existing at that time, i.e., at 0.79 per cent, instead of LIBOR +2 per cent.
CIT v. Vaibhav Gems Ltd ( 2017) 88 taxmann.com 12 (Raj.)(HC) Editorial : SLP of revenue is dismissed, CIT v. Vaibhav Gems Ltd. (2018) 259 Taxman 130 (SC)
S. 92C : Transfer pricing-Arm’s length price-Adjustment of interest-Foreign subsidiary-Corporate guarantee-Loan to Associated Enterprises- Delay in realizing sale proceeds from Associated Enterprises – Adjustment should be made at average LIBOR rate existing at that time, i.e., at 0.79 per cent, instead of LIBOR +2 per cent. [S. 92B]