CIT v. Cotton Naturals (I) (P.) Ltd.

55 Taxmann.com 523High Court2015#291 most cited

What is CIT v. Cotton Naturals (I) (P.) Ltd. authority for?

The interest rate for benchmarking foreign currency loans advanced to Associated Enterprises should be the market-determined rate applicable to the currency of the loan, such as LIBOR for US Dollar loans, rather than a domestic lending rate like the Indian PLR.

273

judgments rely on this decision, according to BharatTax’s citation analysis of 369,743 Indian tax judgments — from 2015 to 2026.

Also referred to as

CIT v. Cotton Naturals (I) (P.) Ltd. · 55 Taxmann.com 523 · 231 Taxmann 401 · section 92B · section 92CA(3) · arm's length interest · foreign currency loan · outstanding receivables · LIBOR · PLR · benchmarking interest · associated enterprise

Also reported as

231 Taxmann 401

Sections most often in play

Section 143(3)Section 92BSection 144C(13)Section 144BSection 144C(5)Section 234BSection 92CA(3)Section 234C
Read the full judgment

Issues it is cited on

interest on outstanding receivablessection 92b(1)safe harbour rulessafe harboursection 92bsection 72asection 92(1)preliminary expensescup methodcorporate guaranteeworking capital adjustmenttransfer pricing order

Judgments citing CIT v. Cotton Naturals (I) (P.) Ltd.

Finastra Software Solutions (India) Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

In the result, the appeal filed by the assessee stands allowed as indicated hereinabove

ITA 189/BANG/2022[2017-18]Status: DisposedITAT Bangalore31 May 2023AY 2017-18

Bench: Smt. Beena Pillai & Ms. Padmavathy Sit(Tp)A No. 189/Bang/2022 Assessment Year : 2017-18 M/S. Finastra Software Solutions (India) Pvt. Ltd., 4Th To 6Th Floor, Virgo The Deputy Building, Bagmane Commissioner Of Constellation Income Tax, Business Park Outer Circle – 3 (1)(1), Ring Road, Vs. Bangalore. Dodanekundi, Bangalore. Pan: Aaack9067G Appellant Respondent : Smt. Tanmayee Rajkumar, Assessee By Advocate Revenue By : Ms. Neera Malhotra, Cit-Dr Date Of Hearing : 01-03-2023 Date Of Pronouncement : 31-05-2023 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against The Final Assessment Order Dated 27.01.2022 For A.Y. 2017-18 On Following Grounds Of Appeal: “1. The Impugned Final Assessment Order Dated 27.01.2022 Was Not Communicated In The Manner Prescribed Under The Income-Tax Act, 1961 & The Rules Made Thereunder & Therefore The Proceedings Are Null & Void.

For Respondent: Smt. Tanmayee Rajkumar
Section 115JSection 40A(7)Section 43BSection 80GSection 92B

…IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : BANGALORE BEFORE SMT. BEENA PILLAI, JUDICIAL MEMBER AND MS. PADMAVATHY S, ACCOUNTANT MEMBER IT(TP)A No. 189/Bang/2022 Assessment Year : 2017-18 M/s. Finastra Software Solutions (India) Pvt. Ltd., 4th to 6th Floor, Virgo The Deputy Building, Bagmane Commissioner of Constellation Income Tax, Business Park Outer Circle – 3 (1)(1), Ring Road, Vs. Bangalore. Dodanekundi, Bangalore. PAN: AAACK9067G APPELLANT RESPONDENT : Smt. Tanmayee Rajkumar, Assessee by Advocate Revenue by : Ms. Neera Malhotra, CIT-DR Date of Hearing : 01-03-2023 Date of Pronouncement : 31-05-2023 ORD…

Larsen & Toubro Infotech Ltd, Mumbai vs. Addl CIT RG 2(2), Mumbai

ITA 1924/MUM/2014[2009-10]Status: DisposedITAT Mumbai31 May 2023AY 2009-10
For Appellant: Shri Percy J PardiwallaFor Respondent: Dr. Yogesh Kamat, CIT DR
Section 10ASection 143(2)Section 143(3)Section 144C(13)Section 144C(5)Section 92C

…IN THE INCOME TAX APPELLATE TRIBUNAL "K" BENCH, MUMBAI SHRI B.R. BASKARAN, ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER LTIMindtree Limited (Formerly Larsen & Toubro Infotech Ltd.) Taxation Department, L&T House, 2nd Floor, N. M. Marg, Ballard Estate, Mumbai-400001 [PAN: AAACL1681P] …………… Appellant Vs Additional Commissioner of Income Tax, Range-2(2), Room No. 577, 5th Floor, Aaykar Bhavan, Respondent …………… M. K. Marg, Mumbai-400020 Appearance For the Appellant/Assessee : Shri Percy J Pardiwalla Ms. Arti Sathe For the Respondent/Department : Dr. Yogesh Kamat, CIT DR Date Conclusion of hearing : 02.03.…

Brodaways Overseas Limited, Jalandhar vs. Deputy Commissioner of Income Tax, Circle-1, Jalandhar

ITA 123/ASR/2018[2013-14]Status: DisposedITAT Amritsar30 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 49/ASR/2016[2011-12]Status: DisposedITAT Amritsar30 May 2023AY 2011-12

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 48/ASR/2016[2010-11]Status: DisposedITAT Amritsar30 May 2023AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 47/ASR/2016[2009-10]Status: DisposedITAT Amritsar30 May 2023AY 2009-10

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 46/ASR/2016[2007-08]Status: DisposedITAT Amritsar30 May 2023AY 2007-08

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadways Overseas Ltd, Jalandhar

ITA 345/ASR/2016[2012-13]Status: DisposedITAT Amritsar30 May 2023AY 2012-13

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

The Assistant Commissioner of Income Tax, Jalandhar vs. M/S Broadways Overseas Ltd, Jalandhar

ITA 477/ASR/2015[2008-09]Status: DisposedITAT Amritsar30 May 2023AY 2008-09

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…leted the adjustment of Rs. 1,48,40,164/- made by Ld. TPO/AO after following the judgment of Hon’ble Delhi High Court in the case of CIT Vs. Cotton Naturals (I) 35 I.T.A. Nos. 477 & CO 32/Asr/2015 & Ors Asstt. CIT v. Broadways Overseas Ltd. & Ors Pvt. Ltd. 276 CTR 445 : 231 Taxmann 401, wherein it has been held that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency. Ld. CIT(A) has also considered the following judicial pronouncements while holding that LIBOR should have been used for benchmarking interest rate on loan advanced to AE in foreign currency :- a)…

Imedx Information Services Private Limited, Hyderabad vs. DCIT, Circle-2(1), Hyderabad

In the result, appeal of the assessee is treated as partly allowed for statistical purposes

ITA 1755/HYD/2019[2015-16]Status: DisposedITAT Hyderabad10 May 2023AY 2015-16

Bench: Shri Rama Kanta Panda & Shri K. Narasimha Charyआ.अपी.सं / Ita-Tp No. 1755/Hyd/2019 (निर्धारण वर्ा / Assessment Year: 2015-16)

For Appellant: Shri H. Srinivasulu, ARFor Respondent: Shri Rajendra Kumar, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA-TP No. 1755/Hyd/2019 (निर्धारण वर्ा / Assessment Year: 2015-16) iMedX Information Deputy Commissioner Services Private Limited, Vs. of Income Tax, Hyderabad Circle- 2(1), [PAN No. AABCI3550P] Hyderabad अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध/Assessee by: Shri H. Srinivasulu, AR रधजस्‍व द्वधरध / Revenue by: Shri Rajendra Kumar, CIT-DR सुिवधई की तधरीख/Date of hearing: 26/04/202…

Kantar Gdc India Private Limited, Hyderabad vs. DCIT, Circle-2(1), Hyderabad

In the result, appeal of the assessee is treated as partly allowed for statistical purposes

ITA 484/HYD/2022[2018-19]Status: DisposedITAT Hyderabad09 May 2023AY 2018-19

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri Ajit Kumar Jain, ARFor Respondent: Shri Rajendra Kumar, CIT-DR
Section 143(3)Section 92B

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 484/Hyd/2022 (निर्धारण वर्ा / Assessment Year: 2018-19) Kantar GDC India Private Vs. The Deputy Commissioner Limited, of Income Tax, Hyderabad Circle-2(1), [PAN No. AABCN2278F] Hyderabad अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध/Assessee by: Shri Ajit Kumar Jain, AR रधजस्‍व द्वधरध/Revenue by: Shri Rajendra Kumar, CIT-DR सुिवधई की तधरीख/Date of hearing: 25/04/2023 घोर्णध की त…

Gkc Projects Limited, Hyderabad vs. ACIT, Central Circle-3(1), Hyderabad

The appeals are partly allowed, accordingly

ITA 421/HYD/2022[2018-19]Status: DisposedITAT Hyderabad28 Apr 2023AY 2018-19

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri P.V.S.S. Prasad, ARFor Respondent: Shri Rajendra Kumar, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER निर्धारण वर्ा आ.अपी.सं / अपीलधर्थी / प्रत्‍यर्थी / / A.Y. ITA-TP No. Appellant Respondent Asst. Commissioner of 552/Hyd/21 2017-18 Income Tax, GKC Projects Limited, Circle-3(1) / Hyderabad Asst. Commissioner of [PAN No. AACCG1395F] Income Tax, 421/Hyd/22 2018-19 Central Circle-3(1), Hyderabad निर्धाररती द्वधरध/Assessee by: Shri P.V.S.S. Prasad, AR रधजस्‍व द्वधरध/Revenue by: Shri Rajendra Kumar, CIT-DR सुिवधई की तधरी…

Gkc Projects Limited, Hyderabad vs. Assistant Commissioner of Income Tax, Circle-3(1), Hyderabad

The appeals are partly allowed, accordingly

ITA 552/HYD/2021[2017-18]Status: DisposedITAT Hyderabad28 Apr 2023AY 2017-18

Bench: Shri Rama Kanta Panda & Shri K.Narasimha Chary

For Appellant: Shri P.V.S.S. Prasad, ARFor Respondent: Shri Rajendra Kumar, CIT-DR
Section 143(3)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “A”, HYDERABAD BEFORE SHRI RAMA KANTA PANDA, ACCOUNTANT MEMBER & SHRI K.NARASIMHA CHARY, JUDICIAL MEMBER निर्धारण वर्ा आ.अपी.सं / अपीलधर्थी / प्रत्‍यर्थी / / A.Y. ITA-TP No. Appellant Respondent Asst. Commissioner of 552/Hyd/21 2017-18 Income Tax, GKC Projects Limited, Circle-3(1) / Hyderabad Asst. Commissioner of [PAN No. AACCG1395F] Income Tax, 421/Hyd/22 2018-19 Central Circle-3(1), Hyderabad निर्धाररती द्वधरध/Assessee by: Shri P.V.S.S. Prasad, AR रधजस्‍व द्वधरध/Revenue by: Shri Rajendra Kumar, CIT-DR सुिवधई की तधरी…

Dy. Commissioner of Income Tax, (International Taxation)-1, Hyderabad vs. Fair Field Development Limited, Cyprus

In the result, the appeal of Revenue in ITA

ITA 488/HYD/2019[2014-15]Status: DisposedITAT Hyderabad25 Apr 2023AY 2014-15

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2014-15 M/S. Fairfield Developments Vs. Dy. Commissioner Of Income Limited, Tax, Hyderabad. International Taxation – 1 Pan : Aabcf3158N Hyderabad. (Appellant) (Respondent) Ita 488/Hyd/2019 Assessment Year 2014-15 Dy. Commissioner Of Income Vs. M/S. Fairfield Developments Tax, Limited, International Taxation – 1, Hyderabad. Hyderabad. Pan : Aabcf3158N (Appellant) (Respondent) Assessee By: Shri Akshay Surana & Siddharth Surana, C.A Revenue By: Shri K.P.R.R. Murthy Date Of Hearing: 27.03.2023 Date Of Pronouncement: 25.04.2023 O R D E R Per Laliet Kumar, J.M. These Two Appeals Filed By The Assessee & The Revenue, Respectively, Are Directed Against The Order Of Commissioner Of Income Tax (Appeals) – 10, Hyderabad Dated 16.01.2019 For The Assessment Year 2014-15. 2 M/S. Fairfield Developments Limited

For Appellant: Shri Akshay Surana & SiddharthFor Respondent: Shri K.P.R.R. Murthy
Section 142(1)Section 92(4)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member Assessment Year: 2014-15 M/s. Fairfield Developments Vs. Dy. Commissioner of Income Limited, Tax, Hyderabad. International Taxation – 1 PAN : AABCF3158N Hyderabad. (Appellant) (Respondent) ITA 488/Hyd/2019 Assessment Year 2014-15 Dy. Commissioner of Income Vs. M/s. Fairfield Developments Tax, Limited, International Taxation – 1, Hyderabad. Hyderabad. PAN : AABCF3158N (Appellant) (Respondent) Assessee by: Shri Akshay Surana & Siddh…

Fairfield Development Limited, Hyderabad vs. Dy. Commissioner of Income Tax, (International Taxation), Hyderabad

In the result, the appeal of Revenue in ITA

ITA 347/HYD/2019[2014-15]Status: DisposedITAT Hyderabad25 Apr 2023AY 2014-15

Bench: Shri R.K. Panda & Shri Laliet Kumarassessment Year: 2014-15 M/S. Fairfield Developments Vs. Dy. Commissioner Of Income Limited, Tax, Hyderabad. International Taxation – 1 Pan : Aabcf3158N Hyderabad. (Appellant) (Respondent) Ita 488/Hyd/2019 Assessment Year 2014-15 Dy. Commissioner Of Income Vs. M/S. Fairfield Developments Tax, Limited, International Taxation – 1, Hyderabad. Hyderabad. Pan : Aabcf3158N (Appellant) (Respondent) Assessee By: Shri Akshay Surana & Siddharth Surana, C.A Revenue By: Shri K.P.R.R. Murthy Date Of Hearing: 27.03.2023 Date Of Pronouncement: 25.04.2023 O R D E R Per Laliet Kumar, J.M. These Two Appeals Filed By The Assessee & The Revenue, Respectively, Are Directed Against The Order Of Commissioner Of Income Tax (Appeals) – 10, Hyderabad Dated 16.01.2019 For The Assessment Year 2014-15. 2 M/S. Fairfield Developments Limited

For Appellant: Shri Akshay Surana & SiddharthFor Respondent: Shri K.P.R.R. Murthy
Section 142(1)Section 92(4)

…आयकर अपीलीय अधिकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member Assessment Year: 2014-15 M/s. Fairfield Developments Vs. Dy. Commissioner of Income Limited, Tax, Hyderabad. International Taxation – 1 PAN : AABCF3158N Hyderabad. (Appellant) (Respondent) ITA 488/Hyd/2019 Assessment Year 2014-15 Dy. Commissioner of Income Vs. M/s. Fairfield Developments Tax, Limited, International Taxation – 1, Hyderabad. Hyderabad. PAN : AABCF3158N (Appellant) (Respondent) Assessee by: Shri Akshay Surana & Siddh…

Tata Chemicals Ltd, Mumbai vs. ACIT 2(3), Mumbai

Appeal is hereby dismissed as infructuous

ITA 6900/MUM/2012[2007-08]Status: DisposedITAT Mumbai31 Mar 2023AY 2007-08
Section 143(3)Section 144C(5)

…er LIBOR interest rate should be adopted in respect of loans given in foreign currency in which the said loan is to be recovered was subject matter of consideration by the Hon’ble Delhi High Court in the case of CIT vs. Cotton Naturals (I)(P) Ltd. reported in 276 CTR 445 (Del). The relevant operative portion in this regard is reproduced hereunder:- “39. The question whether the interest rate prevailing in India should be applied, for the lender was an Indian company/assessee, or the lending rate prevalent in the United States should be applied, for the borrower was a resident and an assessee of the said country,…

Tata Chemicals Ltd, Mumbai vs. ACIT 2(3), Mumbai

Appeal is hereby dismissed as infructuous

ITA 8710/MUM/2011[2007-08]Status: DisposedITAT Mumbai31 Mar 2023AY 2007-08
Section 143(3)Section 144C(5)

…er LIBOR interest rate should be adopted in respect of loans given in foreign currency in which the said loan is to be recovered was subject matter of consideration by the Hon’ble Delhi High Court in the case of CIT vs. Cotton Naturals (I)(P) Ltd. reported in 276 CTR 445 (Del). The relevant operative portion in this regard is reproduced hereunder:- “39. The question whether the interest rate prevailing in India should be applied, for the lender was an Indian company/assessee, or the lending rate prevalent in the United States should be applied, for the borrower was a resident and an assessee of the said country,…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

Appeal is hereby dismissed as infructuous

ITA 9057/MUM/2010[2006-07]Status: DisposedITAT Mumbai31 Mar 2023AY 2006-07
Section 143(3)Section 144C(5)

…er LIBOR interest rate should be adopted in respect of loans given in foreign currency in which the said loan is to be recovered was subject matter of consideration by the Hon’ble Delhi High Court in the case of CIT vs. Cotton Naturals (I)(P) Ltd. reported in 276 CTR 445 (Del). The relevant operative portion in this regard is reproduced hereunder:- “39. The question whether the interest rate prevailing in India should be applied, for the lender was an Indian company/assessee, or the lending rate prevalent in the United States should be applied, for the borrower was a resident and an assessee of the said country,…

DCIT, New Delhi vs. M/S Rampgreen Solutions Pvt. Ltd., (Erstwhile Vcostomer Services India Pvt. Ltd), New Delhi

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 1618/DEL/2016[2011-12]Status: DisposedITAT Delhi24 Mar 2023AY 2011-12

Bench: Shri G. S. Pannua N D Shri Challa Nagendra Prasad

Section 143(3)Section 144C(5)Section 14ASection 234ASection 271(1)(c)Section 92C

…its that the Tribunal held that 37 Cross I.T.A. Nos. 1404 & 1618/Del/2016 interest has to be determined as per US currency and not as per prime lending rate as applied by the TPO, following the judgement in the case of CIT Vs. Cotton Naturals (I) (P.) Ltd. [276 CTR 445], the Tribunal directed the TPO to re-compute the working capital adjustment on the basis of interest as per US currency. This decision of the Tribnunal has been confirmed by the Hon’ble Delhi High Court by dismissing the appeal of the Revenue observing that the issue consisting the rate of interest for working capital adjustment is covered again…

M/S. Rampgreen Solutions Pvt. Ltd., Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is partly allowed and the appeal of the Revenue is dismissed

ITA 1404/DEL/2016[2011-12]Status: DisposedITAT Delhi24 Mar 2023AY 2011-12

Bench: Shri G. S. Pannua N D Shri Challa Nagendra Prasad

Section 143(3)Section 144C(5)Section 14ASection 234ASection 271(1)(c)Section 92C

…its that the Tribunal held that 37 Cross I.T.A. Nos. 1404 & 1618/Del/2016 interest has to be determined as per US currency and not as per prime lending rate as applied by the TPO, following the judgement in the case of CIT Vs. Cotton Naturals (I) (P.) Ltd. [276 CTR 445], the Tribunal directed the TPO to re-compute the working capital adjustment on the basis of interest as per US currency. This decision of the Tribnunal has been confirmed by the Hon’ble Delhi High Court by dismissing the appeal of the Revenue observing that the issue consisting the rate of interest for working capital adjustment is covered again…