S. 92C : Transfer pricing – Arm’s length price – CUP method -Interest-free debt funding of an overseas company in the nature of a special purpose vehicle interest-free debt funding of an overseas company in the nature of a special purpose vehicle – Cannot be compared with loan simpliciter – Cannot be subjected to arm’s length price. [S. 92A, 92B]

Allowing the appeal of the asssessee the Tribunal held that is an interest-free debt funding of an overseas company in the nature of a special purpose vehicle (SPV), with a corresponding obligation to use it for the purpose of acquisition of a target company abroad, cannot be compared with a loan simpliciter, and cannot be subjected to an arm’s length price adjustment, on the basis of Comparable Uncontrolled Price (CUP) method accordingly. (ITA Nos. 7523/Mum/2014, 5827/Mum/2015 and 484/Mum dated August 30, 2021 (AY .2010-11, 2011-12, 2012-13)

[Hon’ble Justice P. P. Bhatt, President and Hon’ble Shri Pramod Kumar, Vice President ITAT-Mumbai]