Held by the Tribunal that the rate of interest charged by the assessee is more than the arm’s length rate of interest as worked out on the basis of the rates prevalent in the countries where the borrower enterprises are situated, hence no transfer pricing adjustment can be made. Order of settlement commission is conclusive as regards the matter there in and not on other years hence the issue is decided on merits. (AY. 2012-13)
Uttara Foods & Feeds (P) Ltd. v. ACIT (2019) 182 DTR 333 / 202 TTJ 540 / (2020) 185 ITD 382 (Pune)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Interest on loans to AEs-Arm’s length rate of interest is the rate prevalent in the country where the loan is received/consumed and not the country in which the assessee advances loans to its AEs-Order of settlement commission is conclusive as regards the matter there in and not on other years. [S. 245D(4), 245I]